Global oil prices have surged back above $100 a barrel following conflicting signals over possible negotiations between the United States and Iran, adding fresh volatility to energy markets.
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Benchmark Brent crude rose by around 4% in Asian trading on Tuesday, reaching $103.94 per barrel. Meanwhile, Nymex Light Sweet climbed 4.1% to $91.75.
Prices Rebound After Sharp Drop
The rebound follows a sharp decline on Monday, when Brent crude fell by more than 10% after Donald Trump said the US would delay planned strikes on Iranian power infrastructure. At the time, he cited “productive” discussions with Tehran and suggested progress towards a potential resolution.
Conflicting Claims Fuel Uncertainty
However, Iranian officials quickly rejected claims that talks had taken place, describing them as an attempt to influence markets. The denial has contributed to renewed uncertainty, pushing oil prices higher once again.
Over the weekend, Trump had warned that the US could target Iranian energy facilities if shipping through the Strait of Hormuz was not restored within 48 hours. Iran responded by threatening to strike key infrastructure across the region.
Those escalating tensions had earlier driven Brent crude as high as $113 per barrel before Monday’s sudden drop.
Strategic Waterway Disruption
The Strait of Hormuz remains a central factor in market movements. The vital waterway, through which roughly 20% of the world’s oil and liquefied natural gas typically flows, has been effectively blocked since the conflict intensified in late February.
The disruption has raised concerns over global supply, contributing to sharp price swings and heightened volatility in recent weeks.
Markets React to Ongoing Conflict
Energy markets have been particularly sensitive to developments since US and Israeli strikes on Iran at the end of February, followed by retaliatory actions from Tehran.
Despite the turbulence in oil prices, Asian stock markets showed signs of stabilising on Tuesday. Japan’s Nikkei 225 rose by 0.8%, Hong Kong’s Hang Seng gained 1.6%, and South Korea’s Kospi increased by 2.2%, recovering some losses from the previous day.
Measures to Ease Pressure
Governments have begun taking steps to mitigate the impact of rising energy costs and supply disruptions. The US has temporarily eased sanctions on Russian and Iranian oil shipments already at sea in an effort to stabilise supply.
However, with uncertainty over diplomatic progress and continued tensions in the region, markets remain highly sensitive to developments.
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Adapted by ASEAN Now. Source 24 March 2026