What caused the rise in oil prices?

The rise in oil prices is attributed to escalating tensions between the United States and Iran, which has led investors to closely monitor diplomatic efforts to resolve disputes.

Why are the tensions between the U.S. and Iran significant?

The tensions are significant because they could disrupt oil supplies, particularly through the Strait of Hormuz, which is crucial for global oil transportation.

What actions are being taken by the U.S. in response to the tensions?

The U.S. has deployed warships near Iranian waters and is considering whether to continue diplomatic engagement or explore other options.

What recent developments occurred in Iran's diplomatic talks?

Iran's talks in Geneva have seen some progress, although disagreements remain on several issues, with expectations for more details from Tehran in two weeks.

What do analysts predict about future oil prices?

Analysts suggest that while tensions are high, the likelihood of a full-scale conflict is low, which may lead to a cautious approach in the markets.

Oil Prices Rise Amid Escalating Tensions Between America and Iran

Oil prices rose slightly today, Thursday, as investors closely monitor diplomatic efforts between the United States and Iran to resolve ongoing disputes, amid escalating military tensions in vital oil-producing regions.

Brent crude and West Texas Intermediate stabilized at their highest levels since early February, after recording strong gains of over 4% yesterday.

By 07:35 GMT, Brent crude rose by 23 cents or 0.3% to reach $70.58 per barrel, while West Texas Intermediate rose by 25 cents or 0.4% to $65.44 per barrel.

This comes as traders assess the likelihood of disruptions in oil supplies, especially with ongoing tensions between Washington and Tehran.

Analysts at "ING" noted that the market is increasingly concerned about the possibility of the United States taking action against Iran, which could affect not only Iranian oil production but also oil flows through the Gulf in general, particularly through the Strait of Hormuz, through which about 20% of global oil supplies pass.

In the context of tensions, Iran issued a notice to pilots that it will conduct missile tests in southern areas of the country today, Thursday, from 03:30 to 13:30 GMT, while the United States deployed warships near Iranian waters.

Reuters reported U.S. Vice President J.D. Vance stating that Washington is considering whether to continue diplomatic engagement with Tehran or resort to "another option."

On the diplomatic front, Iran's talks in Geneva saw some progress, despite ongoing disagreements over several issues.

The White House expects Tehran to provide more details within two weeks.

At the same time, data from the "American Petroleum Institute" indicated a decline in crude and gasoline inventories and distillates last week, contrary to expectations that crude inventories would rise by about 2.1 million barrels.

The U.S. Energy Information Administration is set to release its official report on oil inventories today, Thursday.

For his part, Hiroyuki Kikukawa, chief expert at "Nissan Securities Investment," believes that tensions between Washington and Tehran remain high, but the likelihood of a full-scale armed conflict is low, prompting markets to adopt a "wait-and-see" approach.

He added that any potential U.S. military action would be limited to short-term airstrikes to avoid a sharp rise in crude oil prices.