Oil edges higher ahead of Iran-US nuclear talks

Oil prices climbed as investors assessed the prospects for a US-Iran nuclear agreement and lingering geopolitical risks that could disrupt supply, particularly through the strategic Strait of Hormuz.

Brent crude traded near $72 a barrel, while West Texas Intermediate hovered around $67, lifted by concerns over potential conflict or continued instability in the Middle East, News.Az reports, citing Bloomberg.

US President Donald Trump reiterated his preference for a diplomatic solution but warned of serious consequences if no deal is reached. Negotiations on a nuclear deal are set to resume on Thursday in Geneva, with senior US envoys expected to meet Iranian officials.

While hopes for diplomacy may temper fears of a wider conflict, markets remain sensitive to any escalation. Concerns persist that military action or retaliatory moves — such as threats to shipping through the Strait of Hormuz, a critical artery for global oil exports — could tighten supply and fuel further price gains. Recent partial closures of the strait during Iranian military drills have also underscored ongoing risk to transit routes.

Oil’s recent climb reflects both geopolitical risk premiums and uncertainty stemming from US trade policy, adding to the broader backdrop of supply and demand dynamics in global energy markets.

News.Az 

By Nijat Babayev