Oil prices rose again on Tuesday as escalating tensions between the United States and Iran reduced hopes for a swift diplomatic resolution. Brent crude futures gained 62 cents, or 0.7 percent, to reach $84.39 a barrel. The report said the worsening tensions were contributing to uncertainty in the oil market.

US West Texas Intermediate crude also increased, rising 61 cents, or 0.7 percent, to $80.95 a barrel. The market response was linked to the lower prospect of a rapid diplomatic settlement between Washington and Tehran.

Before the rebound, Brent had fallen 7 percent and reached its lowest level in three weeks. WTI had dropped more than 5 percent in the previous session, falling to its lowest level in nearly a week. The report identified continued US-Iran tensions and diminished expectations of a quick diplomatic outcome as factors affecting oil market conditions.