Oil prices moved higher on Tuesday, approaching levels last seen nearly seven months ago as traders monitored rising geopolitical risks ahead of another round of nuclear negotiations between the United States and Iran.
Brent crude futures added 48 cents, or 0.7%, to $71.97 per barrel by 0658 GMT, while U.S. West Texas Intermediate crude gained 45 cents, also 0.7%, to $66.76 per barrel.
Brent is currently trading at its strongest level since July 31, while WTI has reached its highest level since August 1.
“At this stage, geopolitics is clearly doing most of the heavy lifting for oil prices, with the current firmness largely driven by anticipation rather than actual supply loss,” said Phillip Nova senior market analyst Priyanka Sachdeva.
“The risk of possible military escalation in the Middle East is gaining traction, and thus, traders appear to hedge against worst-case scenarios.”
A third round of nuclear talks between Iran and the United States is scheduled to take place in Geneva on Thursday, Oman’s Foreign Minister Badr Albusaidi confirmed on Sunday.
Washington continues to press Tehran to abandon its nuclear ambitions, while Iran has firmly rejected the demand and insists it is not pursuing nuclear weapons.
Amid mounting concerns over a potential military confrontation, the U.S. State Department has begun withdrawing non-essential staff and family members from the American embassy in Beirut, according to a senior official on Monday.
U.S. President Donald Trump warned in a social media post that it would be a “very bad day” for Iran if negotiations fail to produce an agreement.
“In the near-term, geopolitical factors related to the U.S.-Iran conflict are likely to be the primary driver for oil prices,” said OANDA senior market analyst Kelvin Wong.
“For now, WTI crude oil is evolving in a short-term bullish dynamic, holding above its 20-day moving average, acting as a key short-term support at $63.90/barrel.”
Trade developments also remained a key focus. Trump cautioned countries on Monday against backing away from recently negotiated trade agreements after the Supreme Court struck down his emergency tariffs, warning that significantly higher duties could be imposed under alternative trade legislation.
“U.S. President Donald Trump created uncertainty for global growth and fuel demand with a new round of tariff hikes,” UOB Bank analysts said in a client note.
Trump said on Saturday that a temporary tariff on imports into the United States from all countries would be increased to 15% from 10%, the maximum level permitted under existing law.
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