Oil prices rebalance globally amid anticipation of the outcome of talks on ending the war

 Global energy markets witnessed a partial rebalancing in early trading on Tuesday, with oil prices recording a significant rise driven by supply concerns stemming from the current geopolitical tensions.

Price Movements and Indices

According to the Reuters news agency, Brent crude futures rose by $1.06, or 1.1%, to settle at $101 per barrel. In the same context, the US West Texas Intermediate crude jumped by $1.58, or 1.8%, to reach $89.71.

War Bonus and Market Volatility

The rise comes after a sharp fall of more than 10% on Monday, as markets were affected by US President Donald Trump's comments about postponing possible attacks on Iran's energy facilities for five days and talk of "points of agreement" resulting from talks with Iranian officials.

In an analysis of the scene, Tim Water, chief market analyst at KCCM Trade, said the suspension of the bombing plan had effectively taken a large part of the "war bonus" out of prices.

  Water said that the moderate rise recorded today reflects the market's attempt to regain its balance, stressing that traders are aware that the Strait of Hormuz remains a security-unstable area despite the temporary calm.

Shipping lane security

The ongoing military operations have caused the almost complete halt of the movement of about 20% of the world's supply of oil and liquefied gas through the Strait of Hormuz.

Despite these restrictions, Reuters noted that two oil tankers bound for India successfully crossed the strait on Monday, giving a glimmer of hope that the flow of cargo could continue under tight control.