Oil prices jump on renewed US-Iran tensions

Oil prices surged more than 3% after renewed uncertainty in negotiations between the United States and Iran raised concerns over global supply stability and pushed geopolitical risk back into focus.

Brent crude futures rose by $3.47, or 3.3%, reaching $107.68 per barrel, while West Texas Intermediate (WTI) climbed $3.54, or 3.6%, to $101.61. Both benchmarks had already gained nearly 3% in the previous trading session, News.Az reports, citing Al Jazeera.

Market analysts said the latest move was driven by stalled diplomatic efforts and rising tensions between Washington and Tehran over proposals aimed at reducing conflict in the Middle East. One analyst noted that both sides had rejected each other’s negotiation terms, contributing to renewed instability in energy markets.

Concerns over supply disruptions also intensified following warnings about the strategic importance of the Strait of Hormuz, a key global oil transit route. Energy industry leaders cautioned that any disruption in the area could significantly affect global supply flows and delay market stabilization.

Analysts further suggested that oil prices could react sharply to future developments, with potential declines if a breakthrough deal is reached, or further increases if tensions escalate or shipping routes face disruption.

The situation highlights how geopolitical risks continue to play a central role in global energy pricing, particularly when tensions involve major oil-producing regions.

News.Az 

By Aysel Mammadzada