Oil prices inched higher on Tuesday as market participants closely monitored ongoing diplomatic discussions in Tehran, seeking clarity amid persistent regional tensions. By 0918 GMT, Brent crude futures were up 45 cents, or 0.39 percent, at $116.26 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 40 cents, also 0.39 percent, reaching $102.16 per barrel. Both benchmarks rebounded after earlier declines of about 1 percent in the trading session.

Analysts attributed the current elevated price levels to ongoing geopolitical uncertainties that continue to influence supply concerns. Sugandha Sachdeva, founder of SS WealthStreet, a research firm based in New Delhi, noted that some of the early dip in prices appeared driven by investor hopes for a breakthrough in U.S.-Iran negotiations, resulting in profit-taking.

Brent crude prices have remained near recent highs, having surged to above $117 per barrel last week—their highest since April—following a series of Iranian attacks on commercial tankers near the strategic Strait of Hormuz. Prices remained close to that level on Monday as well.

Despite diplomatic efforts, the prospect for a peaceful resolution remains fragile amid renewed hostilities. Yemen’s Houthi rebels, who are aligned with Iran, have escalated attacks on Saudi Arabia, exacerbating regional instability.

October has seen a spike in security incidents affecting commercial shipping in the Strait of Hormuz and adjacent waterways. According to data from a Washington-based think tank that monitors global maritime security, this month marks the most severe period for such attacks since tracking began in 2017.

The disruptions have had a measurable impact on crude export volumes from the Gulf. Flows through the Strait of Hormuz have declined to roughly 60 percent of their typical capacity, marking the fourth consecutive week of falling Gulf crude exports, further contributing to supply concerns and ongoing price support.