Oil prices rose on Thursday, nearing seven-month highs, as investors weighed whether talks between the United States and Iran could avert a military conflict that might disrupt global supplies. However, an increase in U.S. crude inventories capped the gains.
اضافة اعلان
By 01:23 GMT, Brent crude futures rose 27 cents, or 0.3%, to $71.12 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 23 cents, or 0.4%, to reach $65.65.
On Wednesday, Brent had edged up 8 cents, while WTI dipped 21 cents. Both benchmarks hit their highest levels since July 31 on Monday and have remained near those peaks as Washington deploys military forces to the Middle East to pressure Tehran into negotiating an end to its nuclear and ballistic missile programs.
Geopolitical Focus: The Geneva Talks
U.S. envoys Steve Witkoff and Jared Kushner are scheduled to meet with an Iranian delegation for a third round of talks in Geneva on Thursday.
"Investors are focusing on the prospects of avoiding military conflict through these U.S.-Iran negotiations," said Toshitaka Tazawa, an analyst at Fujitomi Securities. Tazawa noted that even if hostilities break out, WTI would likely see a temporary spike above $70 a barrel before retreating to the $60-$65 range, provided the targets are limited and the conflict is short-lived.
A prolonged conflict, however, could lead to significant disruptions in supplies from Iran—the third-largest producer in OPEC—and other Middle Eastern exporters.
Political Stance
In his State of the Union address on Tuesday, President Donald Trump briefly outlined the justification for a potential strike on Iran, asserting he would not allow a nation he described as the world’s "leading state sponsor of terrorism" to possess a nuclear weapon.
Conversely, Iranian Foreign Minister Abbas Araghchi stated on Tuesday that an agreement with the U.S. is "within reach, but only if diplomacy is prioritized."
Source: Reuters
