The sanctions waiver could be a sign that talks between the U.S. and Iran are progressing well.
Oil prices rebounded on Tuesday after a sharp fall the previous session supported by tempered optimism over U.S.-Iran peace talks, while investors awaited clearer signs of progress in restoring crude flows through the Strait of Hormuz.
Oil futures rose on a likely technical recovery after solid losses overnight.
Despite a fragile U.S.-Iran cease-fire and fears of an uneven recovery, millions of barrels of crude oil are already lined up over the short term.
Inflation has been the market's dominant concern.
Oil prices fall on hopes that more Iranian crude will hit the global market as supplies near critically low levels.
Author and former trader Dan Dicker says President Donald Trump's rhetoric can only take the market so far,
A sharp acceleration in electric vehicle sales could reduce global oil demand by as much as 320,000 barrels a day by the end of next year, according to Goldman Sachs, as energy prices retreat towards levels seen before the Iran war. The bank said global EV penetration reached 26.1% of total passenger car sales in May, up 3.4 percentage points since February and close to a record high.
Shipping stalled through the strategically vital Strait of Hormuz over the weekend, according to maritime intelligence company Windward. The data shows that a recovery in oil tanker traffic through the world's most important oil choke point just last week appears to have already hit a snag.
Qatar and Pakistan announced that the U.S. and Iran had agreed to a mechanism to ensure the termination of military operations in Lebanon.
Most share markets slipped in Asia on Monday as doubts about the Middle East peace process sent oil prices and bond yields up again, leading investors to price in more risk of higher U.S. interest rates.
A framework peace agreement between the Trump administration and Iran has shifted the outlook for energy prices and inflation heading into the new week, as discussed on Friday's edition of Maria Bartiromo's “Mornings with Maria” on Fox Business.