Oil prices rose slightly on Tuesday after suffering steep losses in the previous session following comments by US President Donald Trump that negotiations with Iran remain under way, despite repeated denials from Tehran.
Brent crude, the international benchmark, was up 1.22% in morning trading at $84.79 per barrel, while US West Texas Intermediate (WTI) gained 0.71% to $80.91 per barrel.
The rebound followed a sharp sell-off on Monday, when Brent fell 4.7% to close at $83.77 per barrel and WTI dropped 5.1% to $80.34 per barrel.
According to AFP, markets largely brushed aside Iran's denials and instead focused on Mr Trump's assertion that talks between Washington and Tehran are continuing and that Iran is facing what he described as a "last chance" to reach an agreement.
The decline in oil prices helped fuel a strong session on Wall Street, with all three major US stock indices remaining in positive territory throughout Monday's trading.
The Dow Jones Industrial Average rose 1.3% to a record closing high of 53,178.41.
The S&P 500 gained 1.5%, while the Nasdaq Composite advanced 2.1%.
"Geopolitical developments and the decline in oil prices are really providing some momentum for stocks to move towards new highs," said Angelo Kourkafas of Edward Jones.
Mr Kourkafas also cited strong corporate earnings as a factor supporting equities.
Most major US technology companies posted gains, with Amazon reaching a market valuation of $3 trillion for the first time.
Source: CNA
