Oil prices have been volatile because two opposing developments are affecting the market:

• U.S.–Iran diplomacy is showing little clear progress. Mediated discussions have not produced a firm breakthrough, keeping concerns about prolonged Middle East supply disruptions elevated. (Reuters)

• Saudi Arabia has restarted its East-West Pipeline, which is helping restore crude exports through the Red Sea. Saudi Arabia has also resumed oil loadings at Yanbu, at roughly 2 million barrels per day initially. (Reuters)

• On Tuesday, however, oil prices later moved lower as the increase in Saudi and other Middle Eastern exports eased some immediate supply concerns. Reuters reported Brent at about $103.32/barrel and WTI at $90.65/barrel during Tuesday's trading. (Reuters)

• Despite that decline, Brent was still on track for roughly a 14% monthly gain, showing how much geopolitical risk has already been priced into crude.

“Oil rebounds as Iran diplomacy stalls despite Saudi pipeline restarting” essentially means:

Investors are worried that the Iran conflict may continue because diplomacy isn't producing a clear breakthrough. That concern can push oil prices higher, even though Saudi Arabia restarting an important pipeline is increasing available oil supply.

So the market is balancing more Saudi oil supply against the risk of continued disruption around Iran and the Strait of Hormuz. #EarningsSeason #news_update #usa

.