Oil prices edged higher on Tuesday, marking the first gain after five consecutive declines, as investors monitored preparations for potential US‑Iran discussions at the United Nations General Assembly.

Brent crude futures for November settlement rose $1.14, or 1.1%, to $101.48 per barrel at 0317 GMT. The more actively traded November contract climbed $0.85, or 0.9%, to $93.22 per barrel. The front‑month WTI contract, which was set to expire that day, increased 87 cents, or 0.9%, to $96.65 per barrel.

The move follows heightened diplomatic activity after Iran and the United States exchanged threats over the weekend. US President Donald Trump indicated he would be open to a meeting with Iranian President Masoud Pezeshkian, who was expected to attend the UN gathering in New York.

Tim Waterer, chief market analyst at KCM Trade, described the price rise as a short‑covering bounce rather than a fundamental shift. "Traders who had positioned for further declines are reducing exposure while the diplomatic narrative unfolds," he said.

Iran conveyed its conditions for resuming negotiations to mediators, according to Al Jazeera, which cited Iran’s security chief Mohsen Rezaei. Waterer noted that oil prices are likely to stay within a narrow range and remain sensitive to any headline related to US‑Iran diplomacy.

Regional tensions remained elevated after Yemen’s Iran‑aligned Houthi movement claimed attacks on Riyadh and a Saudi Aramco facility in Yanbu, targeting Saudi‑backed forces along the Red Sea coast. Three Iranian sources told Reuters that China had privately urged Tehran to curb Houthi operations after Saudi Arabia appealed to Beijing.

Saudi Aramco increased crude exports through the Strait of Hormuz following disruptions to its East‑West pipeline that forced a temporary halt of shipments via Yanbu. Tanker tracking data showed approximately 14 million barrels of Saudi crude loaded onto seven supertankers within the Gulf on Sunday.

Supply concerns have eased as shipments through the Strait of Hormuz reached a six‑month high, helping to stabilize the market. Crude implied volatility slipped 3.3% to 50.39, though it remains historically elevated, according to Saxo Bank analysts.

Separately, an armed group shut valve seven on Libya’s Sharara crude pipeline to Zawiya port on Monday, reducing production at the Sharara field. The National Oil Corporation reported a decline of roughly 200,000 barrels per day, with output now hovering between 100,000 and 105,000 barrels per day, as confirmed by two field engineers speaking to Reuters.