By Adam Clark
Oil prices were climbing early Tuesday after a steep drop the previous day. Initial relief at President Donald Trump's comments that Washington and Tehran are in talks appears to be fading with the focus on the continued closure of the Strait of Hormuz.
Brent crude, the international standard, was up 2.7% at $102.59 a barrel. West Texas Intermediate, the U.S. standard, was rising 3% to $90.75 a barrel.
During Monday's regular trading session, Brent fell 11% and WTI dropped 10%, and both settled at their lowest prices since March 11 on Trump's remarks.
However, Iran's Foreign Ministry subsequently denied talks with the U.S., according to the Iranian state broadcaster, while the speaker of Iran's parliament said in a social-media post that "no negotiations have been held with the U.S."
Amid the uncertainty, the focus is whether there will be concrete progress on opening the Strait of Hormuz, the narrow waterway through which 20% of the world's oil exports typically flow.
"Even with a possible decrease in tensions...we expect a price floor of $85 -- $90 and a natural drift back to the $110 range until the Strait of Hormuz is restored," wrote Vikas Dwivedi, global energy strategist at Macquarie Group, in a research note.
Consumers around the world are beginning to feel the effects of disruption to oil supplies. Slovenia has become the first European Union member state to implement fuel rationing, while New Zealand announced almost 150,000 families will receive a weekly tax credit to help with fuel costs.
Kurt Barrow, who heads oil, fuel, and chemicals at S&P Global Energy, told Barron's the world is entering "an availability crisis" in which some countries will have to go without oil.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 24, 2026 05:49 ET (09:49 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments