fluid

March 24 (UPI) — The price of oil climbed back above $100 per barrel on Tuesday as hopes for de-escalation in the Iran war faded after Washington said the situation remained “fluid,” Tehran denied there had been any negotiations and a fire put a major Texas refinery out of action.

Claims by President Donald Trump of “major” progress in talks to halt the conflict on Monday sent oil prices tumbling and rallied stock markets, but benchmark Brent crude futures rebounded to more than $103 a barrel on Tuesday after the White House appeared to walk it back, saying no high-level formal meetings were scheduled and denying reports Vice President JD Vance may attend Pakistan-brokered talks.

“These are sensitive diplomatic discussions and the United States will not negotiate through the press. This is a fluid situation, and speculation about meetings should not be deemed as final until they are formally announced by White House press secretary Karoline Leavitt told the BBC.

Iran has, however, acknowledged there had been some contact between the sides regarding talks, with an Iranian foreign ministry official telling CBS that the regime had “received points from the United States.”

“We received points from the United States through mediators and they are being reviewed,” said the official.

The confirmation came amid claim and counterclaim after Trump walked back an ultimatum to destroy Iran’s power plants and energy infrastructure unless it allowed shipping to flow freely again through the Strait of Hormuz by Monday night.

Trump said he was giving Iran a five-day reprieve after “very good and productive” discussions with Tehran on Sunday and Monday but Iranian Parliament Speaker Mohammad-Bagher Ghlaibaf, who has been named as an interlocutor, described it as “fake news” and said there had been no talks.

With a blaze at the Velero Port Arthur refinery still burning after an explosion on Monday at the plant, 90 miles east of Houston, wholesale gasoline and diesel prices were up 10 cents and 16 cents per gallon, hikes Lipow Oil Associates president Andy Lipow said were due almost entirely to the incident, rather than the war.

The affected part of the plant makes diesel fuel and was likely to be out for an extended period, exerting pressure on diesel prices but gasoline production could come back online in the next few weeks as it was in a different area of the refinery, added Lipow who stressed he believed the incident was an accident and that there was no evidence of terrorist sabotage.

Analysts said the market remained fearful of the risk the Iran conflict could be an extended one with knock-on energy supply disruption impacts caused by associated strikes on critical energy production and storage facilities and shipping being unable to leave or enter the Persian Gulf.

“Despite the exuberance on Wall Street, ladies and gentlemen, oil is well off its lows after Tehran denied conducting any weekend negotiations with Washington,” Interactive Brokers senior economist Jose Torres wrote in a note.

“Additionally, in consideration of the vast number of attacks that have affected critical energy in the Middle East … there’s nervousness that there could be capacity and transportation disruptions that keep costs higher than at the beginning of the year even if there’s a deal,” added Torres.

Gulf oil-producing nations meet a large proportion of global oil and natural gas demand, about 20% of which — 20 million barrels a day — is exported on tankers that pass through the narrow Strait of Hormuz, a natural chokepoint effectively closed by Iran since the United States and Israel launched their airborne offensive on Feb. 28.