Oil Prices Fluctuate Amid Rising Geopolitical and Trade Tensions
Oil prices hovered today, Tuesday, near their highest levels in seven months, as investors awaited nuclear talks between the United States and Iran and the escalation of trade and political tensions in the Middle East.
As of 01:20 GMT, Brent crude futures recorded a slight decline of 0.1% to reach $71.40 per barrel, after experiencing significant fluctuations yesterday, Monday, and rising to the highest level since July 31 at $72.50, with price movements exceeding 1% both up and down.
In contrast, West Texas Intermediate crude futures fell by 0.2% to $66.20 per barrel, after reaching $67.28 in the previous session, the highest level since August 4, according to Reuters.
* Developments in the Middle East and Their Impact on the Market
An Iranian official confirmed the possibility of U.S. companies participating as contractors in Iranian oil and gas fields, while ANZ analyst Daniel Hynes noted that oil markets remained tense with the resumption of talks between the U.S. and Iran this week, adding that renewed trade tensions also affected investor sentiment.
Omani Foreign Minister Badr al-Busaidi indicated that the third round of nuclear talks between Washington and Tehran would be held on Thursday in Geneva.
The United States insists that Iran abandon its nuclear program, while Tehran denies any intention to develop a nuclear weapon.
The U.S. State Department announced yesterday, Monday, the withdrawal of non-essential employees and their families from its embassy in Beirut, amid fears of a potential military conflict with Iran.
In a sharp statement on Truth Social, U.S. President Donald Trump warned Iran that it would face a "very bad day" if it did not reach an agreement.
* Price Forecasts and Upcoming Ranges
According to Daniel Hynes' analysis at IG, crude oil is still trading at the highest level within the range of $55 - $66.50 per barrel that has persisted over the past six months, adding that a continued rise above this range could push prices toward $70 - $72, while any signs of easing could push it down to around $61.
* Trade and Geopolitical Tensions
On the trade policy front, Trump threatened countries with a rollback of previous trade agreements with the United States, asserting that he would raise temporary tariffs from 10% to 15% on exports from all countries, which is the maximum allowed under the law.
In another development, a Ukrainian security official reported that Ukrainian drones targeted a Russian pumping station serving the Druzhba pipeline, which supplies Eastern Europe with Russian crude oil.
