FX.co ★ Oil Rebounds Slightly

Brent crude oil futures rose to around $102 per barrel on Tuesday, rebounding from part of the sharp 11% decline in the previous session, though gains remained limited amid ongoing market volatility. Prices advanced in choppy trading as investors assessed mounting geopolitical risks. US allies, including Saudi Arabia and the United Arab Emirates, have adopted a tougher line toward Iran following recent attacks on their territories, with reports indicating that Riyadh could consider military action if its critical infrastructure is hit. There are also indications that Gulf states may move closer to direct involvement in the conflict, which would represent a significant escalation. At the same time, Iran has signaled it does not intend to normalize conditions in the Strait of Hormuz and has ruled out talks with Washington, even as diplomatic efforts continue, with regional ministers holding discussions in Riyadh.