Oil Rebounds as Uncertainty Clouds US-Iran Truce Talks, Strait of Hormuz Tensions Persist

International oil prices rebounded as uncertainty lingered over talks between the US and Iran on extending a ceasefire.

Brent crude traded above $92 a barrel on June 29, while West Texas Intermediate hovered near $89, Bloomberg reported. Brent recovered after closing at its lowest since mid-April on Friday.

The US and Iran have recently exchanged revisions to a draft agreement focused on extending the ceasefire and reopening the Strait of Hormuz. It remains unclear whether the two sides are close to a deal.

Expectations for a ceasefire agreement and the normalization of the Strait of Hormuz had earlier driven oil to its first monthly decline of the year. Even so, Brent remains more than 25% above its level before the war began.

Hamzeh Al Gaaod, a Middle East economic expert, said both Iran and the US continue to hold their ground on key issues including the nuclear program, control of the Strait of Hormuz, the ballistic missile program and sanctions on Iran. Oil prices will remain sensitive for now to developments on the ground and remarks by political leaders, he added.