Oil prices rise as Iran denies US talks, supply fears grow

Core Insights - Oil prices have risen due to supply disruption concerns following Iran's denial of negotiations with the US regarding Gulf tensions [1][2] - Brent crude increased by $1.25 (1.3%) to $101.19 per barrel, while WTI rose by $2.15 (2.4%) to $90.28 per barrel [2] - The Strait of Hormuz, a critical shipping route for oil and LNG, has been affected by Iranian retaliation, impacting approximately 20% of global supply [3] Oil Market Dynamics - Gulf countries, including Saudi Arabia and the UAE, have faced export challenges since the conflict began on February 28, following Iranian threats and attacks on vessels [4] - Despite tensions, two Indian-flagged tankers successfully transported LPG through the Strait of Hormuz, carrying over 92,000 tons expected to arrive in India between March 26 and 28 [4] - The US has temporarily eased sanctions on Russian and Iranian oil at sea to address potential shortages, with traders offering Iranian crude at a premium to Indian refiners [6] Geopolitical Context - Iran has dismissed US claims of negotiations as market manipulation and has taken responsibility for attacks on US targets, labeling Trump's comments as psychological operations [5][6] - Recent attacks have targeted energy infrastructure in Iran, further complicating the geopolitical landscape [6] - The International Energy Agency is in discussions with Asian and European governments about potentially releasing strategic reserves if necessary [6]