Oil prices gained on Tuesday after declining for four consecutive sessions as investors awaited developments on potential US-Iran talks at the United Nations General Assembly this week after more supplies emerged through the Strait of Hormuz over the weekend.
The Brent crude futures November contract rose $1.29, or 1.29%, to $101.63 a barrel at 0758 GMT. The WTI October contract, which expires on Tuesday, climbed 92 cents, or 0.96%, to $96.70 a barrel, Reuters reported.
The more actively traded November contract was up 80 cents, or 0.87%, at $93.17 a barrel.
Tehran and Washington exchanged threats on Sunday, though US President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN meeting.
The rebound in crude suggests traders need fresh developments on supply risks or diplomatic efforts before pushing prices materially lower, said Ole Hansen, head of commodity strategy at Saxo Bank.
Over the weekend, Iran also reportedly conveyed its conditions to mediators for re-engaging in negotiations.
"Oil exports from the Middle East have recovered but remain well below pre-conflict averages," said UBS analyst Giovanni Staunovo.
Hansen said he does not see much further downside in oil prices until there is increased supply through the Strait of Hormuz, particularly refined products, where the real crunch remains.
Separately, an armed group closed valve seven on Libya's Sharara crude pipeline to Zawiya port on Monday, resulting in a significant decline in production at the Sharara oilfield, Libya's National Oil Corporation said in a statement.
Production at the field has fallen by around 200,000 barrels per day and is currently between 100,000 and 105,000 bpd, two engineers at the field told Reuters.
