Oil Steady, Trump Pushes for Iran Nuclear Deal
Oil prices held steady after US President Donald Trump stated his preference remains for a nuclear deal with Iran ahead of this week's round of talks between the two countries, although he reiterated his warning of consequences if an agreement fails. Market sentiment is holding steady as the diplomatic path remains open, but geopolitical risks have not completely subsided.
WTI futures are trading around $66/barrel after closing virtually unchanged on Monday, while Brent remains below $72/barrel. In a social media post, Trump said it would be a "very bad day" for Iran if a deal is not reached, while denying reports that the Pentagon fears a prolonged military campaign would be difficult.
Concerns about the potential impact of a US attack on Iran have been one of the factors driving up oil futures prices throughout this year, although the market is also faced with expectations of a global supply surplus. On the ground, the US has strengthened its military presence in the Middle East, and the State Department ordered the evacuation of non-emergency personnel from the US Embassy in Beirut—a move that underscores the region's heightened risk sensitivity.
On the diplomatic front, Trump's special envoy Steve Witkoff and his son-in-law Jared Kushner are reportedly heading to Geneva for a new round of talks on Thursday, where they will meet again with Iranian Foreign Minister Abbas Araghchi. The market will be monitoring any signs of progress, as the direction of these negotiations could potentially determine whether the oil risk premium persists or begins to fade. (alg)
Source: Newsmaker.id
