Oil rises as global markets assess supply risks after Iran denies US talks

• Trump says US and Iran have 'major points of agreement'.
• Iran rejects claims of contact with Washington amid conflict.
• Brent could hit $150 if Hormuz stays shut through April: Macquarie.
  

Oil prices rose in early trade on Tuesday on ​supply fears, as Iran denied it had held talks with the United States to end the war in ‌the Gulf, contradicting President Donald Trump, who said a deal could be reached soon.

Brent futures rose $1.06, or 1.1%, to $101 a barrel at 0001 GMT, while US West Texas Intermediate (WTI) climbed $1.58, or 1.8%, to $89.71.

Crude futures dropped more than 10% on Monday, after Trump said he had ordered ​a five‑day delay to attacks he had threatened on Iran's power plants, adding the US had held ​productive talks with unnamed Iranian officials that had produced "major points of agreement".

"By shelving the plan ⁠to strike Iranian power plants for five days, the US effectively sucked much of the 'war premium' from the ​oil price," said Tim Waterer, chief market analyst at KCM Trade.

"Today's moderate bounce is just the market finding its footing ​in the mud. Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway."

The war has all but halted shipments of about one-fifth of the world's oil and liquefied natural gas through the Strait ​of Hormuz. However, two tankers bound for India sailed through the strait on Monday.

Tehran rejected the claims of contact with Washington, ​dismissing them as an attempt to manipulate financial markets, while Iran's Revolutionary Guards said they had launched new attacks on US ‌targets and ⁠denounced Trump's comments as "worn‑out psychological operations."

"Even with a possible decrease in tensions after (Monday's) announcement from President Trump, we expect a price floor of $85–$90 and a natural drift back to the $110 range until the Strait of Hormuz is restored," Macquarie said in a note.

It added that if the strait remains effectively shut until the end of April, Brent could ​still reach $150 per barrel.

Fighting has ​damaged energy infrastructure across ⁠the region. In the latest attacks, a gas company office and a pressure‑reduction station were hit in Iran's central city of Isfahan, while a projectile also struck a gas pipeline ​feeding a power station in Khorramshahr, the Iranian semi‑official Fars news agency reported.

The United ​States has temporarily ⁠waived sanctions on Russian and Iranian oil already at sea to ease shortages. Industry sources said traders have offered Iranian crude to Indian refiners at a premium to ICE Brent following Washington's move.

The International Energy Agency Executive Director Fatih Birol said on ⁠Monday it ​is consulting Asian and European governments on possible further releases of ​strategic reserves "if necessary".

Oil executives and energy ministers at a conference in Houston warned of the longer‑term impact of the U.S.–Israel war with Iran on the ​global economy, though US Energy Secretary Chris Wright downplayed the crisis.