Oil prices rebounded 1% on Tuesday from a plunge in the previous session, fuelled by concerns that ‌Middle East supply remains at risk as a diplomatic resolution to the U.S.-Iran war that has disrupted shipments still seems unlikely. Front-month Brent futures rose $1.12, or 1.3%, to $84.89 a barrel by 0355 GMT after dropping 7% in the previous session to a three-week low. U.S. West Texas Intermediate (WTI) crude was up ​77 cents, or 1%, at $81.11 after falling more than 5% in the previous session to stand at its ​lowest in nearly a week. The strategic waterway, which connects Gulf oil producers to global markets, was a channel for about a fifth of ​global shipments of crude oil and natural gas before the conflict. "With the Strait of Hormuz, it keeps a dual-chokepoint risk in the market that prevents ​oil from fully unwinding its geopolitical premium."