By: AGBI

Oil prices rebounded early on Tuesday as peace talks between the US and Iran remain elusive.

Brent crude futures rose 1 percent to $84.61 a barrel by 02:40 GMT, after dropping nearly 7 percent in the previous session to a three-week low.

US West Texas Intermediate crude climbed 0.8 percent to $80.99 after falling more than 5 percent on Monday.

Oil prices had slipped after US President Donald Trump said on Sunday that he had agreed to suspend further attacks on Iran pending peace talks and a reopening of the Strait of Hormuz.

However, Iran’s foreign ministry spokesman Esmail Baghaei rejected Trump’s claim on Monday, saying no negotiations with the US were under way and no meetings were scheduled.

In a social media post, the US Central Command said American forces continue to enforce the maritime blockade against Iran.

As of August 3, 44 commercial vessels had been redirected, two disabled and two boarded, the post said.

Crude loading at the Saudi Red Sea port of Yanbu rebounded at the weekend, despite Houthi threats against vessels calling at the kingdom’s ports.

Loading activity at the terminal had picked up, maritime analyst Arsenio Longo said, although public ship-tracking data offered only a partial picture of crude movements.

Meanwhile, six Saudi-flagged supertankers changed course in the Gulf of Aden towards southern Africa, Reuters reported, citing shipping data.

Only two tankers laden with Saudi oil crossed the Bab al-Mandab Strait, it added.

The United Kingdom Maritime Trade Operations also reported on Tuesday that a cargo vessel had been hit by an unknown projectile northeast of Oman’s Al Khasab.

“While the fighting between Saudi Arabia and the Houthis has not completely halted energy flows, it has forced longer voyage times, higher insurance costs and occasional diversions,” Tim Waterer, chief market analyst at KCM Trade, told Reuters.

Trump’s pause in strikes against Iran buoyed GCC stock markets on Monday.

Dubai’s main share index rose 1.3 percent, while Abu Dhabi’s index rose 0.3 percent.

Saudi Arabia’s benchmark index closed 1.1 percent higher, led by Saudi Aramco and Jabal Omar shares.