Oil Prices Jump 3% After Extension of Nuclear Talks Between Iran and the U.S.

Oil prices rose sharply yesterday, Friday, by about 3%, amid market anticipation of any potential supply disruptions after the United States and Iran decided to extend nuclear talks.

By 13:28 GMT, Brent crude futures had risen by $2.13, reaching $72.88 per barrel, the highest level since last July.

In contrast, West Texas Intermediate crude rose by $2.31 or 3.5% to $67.52 per barrel, also marking its highest levels since August.

Brent crude is on track to record weekly gains of about 1.6%, while West Texas Intermediate is nearing a weekly rise of approximately 1.7%, according to Reuters.

Tamas Varga, an analyst at PVM Oil Associates, said:

"There is uncertainty prevailing, and fear is driving prices up today... Everything is linked to the outcomes of the Iranian nuclear talks and any potential military actions that the United States may take against Iran."

The United States and Iran held indirect talks in Geneva last Thursday, after U.S. President Donald Trump ordered an increase in military presence in the region.

During the session, oil prices rose by more than a dollar per barrel following media reports that talks had stalled due to Washington's insistence on not allowing Iran to enrich uranium, but they later fell after Oman announced progress in negotiations.

Omani Foreign Minister Sayyid Badr Albusaidi noted in a post on X that both sides plan to resume technical negotiations next week in Vienna.

Trump had set a deadline on February 19 for Iran to reach an agreement on its nuclear program, warning of "very bad things" if it fails.

At the same time, Saudi Arabia is working to increase its oil production and exports as part of an emergency plan to mitigate any potential impacts from any attacks.

The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and its allies, is expected to discuss increasing oil production by 137,000 barrels per day for April, after production increases were suspended in the first quarter of the year.

With these developments, markets remain cautiously watchful, as traders await the outcomes of the talks and any potential escalation actions in the Middle East, which could push oil prices to new record levels.