Oil Prices Stay Near Seven-Month Peak Amid Iran Nuclear Talks, Trade Tensions

Crude oil prices remained close to their highest levels in nearly seven months on Tuesday as markets watched upcoming U.S.-Iran nuclear negotiations. Trading was also influenced by renewed concerns over American trade policy and escalating Middle East tensions.

Crude oil markets stayed near seven-month highs on Tuesday as investors monitored developments in U.S.-Iran nuclear negotiations while also considering uncertainties surrounding American trade policies.

Brent crude dropped 9 cents, representing a 0.1% decline to $71.40 per barrel by 0120 GMT. This followed Monday’s turbulent trading session that saw prices reach $72.50 – the peak level since July 31 – with swings exceeding 1% in both directions.

Meanwhile, U.S. crude fell 11 cents or 0.2% to $66.20 per barrel, after climbing to $67.28 during the prior session, marking the highest point since August 4.

ANZ analyst Daniel Hynes noted in his research analysis that “Crude oil markets remained on edge as U.S.-Iran talks resume this week.” He added that “Renewed trade tensions also weighed on sentiment.”

According to Oman’s Foreign Minister Badr Albusaidi’s Sunday announcement, Iran and the United States are scheduled to conduct their third round of nuclear discussions on Thursday in Geneva.

While Washington seeks Iran’s abandonment of its nuclear program, Tehran has consistently rejected these demands and maintains it is not pursuing atomic weapons development.

A senior State Department official announced Monday that non-essential U.S. government staff and their families are being withdrawn from the American embassy in Beirut due to increasing worries about potential military confrontation with Iran.

President Donald Trump posted on social media Monday, warning it would be a “very bad day” for Iran if no agreement is reached.

IG market analyst Tony Sycamore explained in a client note that “Crude oil remains at the very top of the $55–$66.50 trading range that has defined the past six months.” He continued, “A sustained break above the top of this range would open the way for further gains towards $70.00–$72.00. Conversely, signs of de-escalation would likely see a retracement back towards $61.00.”

Regarding trade matters, Trump cautioned nations Monday against withdrawing from recently completed trade agreements with America following the Supreme Court’s rejection of his emergency tariffs, threatening significantly higher duties under alternative trade legislation.

The President announced Saturday his intention to increase temporary tariffs from 10% to 15% on American imports from all nations, reaching the maximum permitted under current law.

Additionally, a Ukrainian security official reported Monday that Ukrainian drones attacked a Russian pumping facility connected to the Druzhba oil pipeline, which transports Moscow’s crude to Eastern European markets.