Energy Preview: Oil prices rebound from a 10% slump yesterday as Middle East tensions flare up

WTI crude oil futures are adding upside by around 4% at $91.65 per barrel on Tuesday morning in Asia following an over 10% slump in the previous session. The sharp drop came after Trump postponed planned strikes on Iranian energy infrastructure for five days and said productive talks were ongoing. However, Iran reportedly denied it had held talks with the US to end the war, contradicting US President Donald Trump's remarks on Monday that a deal could be reached soon, building a rebound in oil prices. Meanwhile, investors remain concerned that energy-driven cost pressures could revive inflation amid effective closure of the Strait of Hormuz, which has led to severe disruption of energy trade but this further supports crude oil prices.

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