Oil prices traded unevenly on Tuesday as United States military operations in southern Iran and President Donald Trump’s conflicting signals on talks between Tehran and Washington unsettled market sentiment.

Brent crude for July delivery rose 1.6 per cent to $97.72 per barrel during Asian trading, while U.S. West Texas Intermediate futures for June fell 5.4 per cent to $91.38 per barrel.

The U.S. military said it carried out “self-defense strikes” in southern Iran, targeting vessels it claimed were attempting to deploy naval mines, along with missile launch sites.

U.S. Central Command stated the operations were aimed at “protecting our troops from threats posed by Iranian forces.”

Complicating the peace talks, Trump said in a social media post on Monday that he had urged Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, and Jordan to join the Abraham Accords, which aim to normalize relations between Arab states and Israel.

He also stated that negotiations with Iran were “proceeding nicely,” while warning that the United States could return to military action if talks break down. “It will only be a Great Deal for all or, no Deal at all,” Trump wrote.

Swiss multinational investment bank UBS said on Friday that the global oil market is showing increasing strain, with inventories continuing to decline amid ongoing disruptions to shipments through the Strait of Hormuz.

The bank noted that observed global oil inventories fell by a combined 246 million barrels in March and April, adding that cumulative production losses could surpass 1 billion barrels by the end of May.