Oil prices nudged up on Tuesday after a sharp 3% plunge the day before, as traders digested early signs of progress in US‑Iran negotiations. A U.S. waiver that permits limited Iranian oil sales was cited as the catalyst, tempering fears of a supply shock. Investors saw the move as a tentative green light for trade.

The waiver, granted amid a broader diplomatic push, allows select customers to purchase Iranian crude under strict conditions, a move that could reopen a modest flow of oil previously barred by sanctions. Analysts note that even a limited resumption eases the tightness in the global market, supporting price stability while investors watch for any reversal in the talks. Overall volumes stay low, but sentiment rises.

Energy traders, however, remain cautious. The earlier 3% plunge erased gains made earlier in the week, and any stall in negotiations could reignite price volatility. For refiners and commodity funds, the current uptick offers a brief window to rebalance positions before the next diplomatic signal. Stakeholders will watch inventory data for confirmation.