NEW YORK: Oil rallied on Tuesday as the biggest crude supply disruption persisted and Iran denied it held talks with the United States to end the war in the Gulf, contradicting US President Donald Trump, who said a deal could be reached soon.

Brent futures settled US$4.55, or 4.55%, higher at US$104.49 a barrel. US West Texas Intermediate climbed US$4.22, or 4.79%, to US$92.35.