Oil prices rose in early trading on Tuesday amid supply concerns after Iran denied holding talks with the America to end the war in the Gulf, contradicting statements by American President Trump, who said that an agreement “could happen soon.”

Brent crude futures climbed $1.06, or 1.1%, to $101 per barrel by 00:01 GMT, while U.S. West Texas Intermediate (WTI) crude rose $1.58, or 1.8%, to $89.71 per barrel.

Crude prices had fallen more than 10% on Monday after Trump said he had ordered a five-day delay in strikes threatened against Iranian power plants, claiming that America “held productive talks with Iranian officials whose identities were not disclosed, resulting in key points of agreement.”

Tim Weeter, chief market analyst at KCM Trade, said, “The United States has effectively removed a large portion of the war premium from oil prices by suspending the plan to strike Iranian power plants for five days.”

He added that “the modest rise we are seeing today is just the market attempting to restore balance amid the turmoil,” noting that “traders understand that, despite the temporary suspension of missile attacks, the Strait of Hormuz remains far from a safe passage.”

The U.S.-Israeli aggression has caused an almost complete halt to the movement of roughly 20% of global oil and liquefied natural gas supplies through the Strait of Hormuz.