Oil Rises Slightly, Market Weighs Chances of US-Iran Nuclear Deal
Oil prices rose on Tuesday as market participants reassessed the chances of a nuclear deal between the United States and Iran. US President Donald Trump said he preferred a diplomatic solution, but also warned of serious consequences if an agreement wasn't reached.
In Asian trading, Brent held around US$72 per barrel, while WTI hovered around US$67. This increase followed a relatively stable close in the previous session, indicating the market was still "waiting for certainty" ahead of the next round of talks.
Nuclear negotiations are scheduled to continue Thursday in Geneva. The market believes the outcome of the talks will determine whether the energy risk premium decreases (if diplomatic progress is made) or increases (if tensions escalate).
Concerns of escalation are also fueled by the US's increased military posture in the region. Reuters reported that the US withdrew non-essential personnel from its embassy in Beirut, a cautious signal that reinforces the perception of the risk of conflict.
Several analysts believe the oil market is currently in a "holding pattern," with limited movement but still focused on the Iran headlines. Under these conditions, even rhetoric about de-escalation tends to be viewed with skepticism until there is evidence of concrete progress at the negotiating table.
The market's primary focus remains on the Strait of Hormuz, a vital shipping route for global oil and LNG. The risk of even the slightest disruption to shipping flows could trigger a price spike due to its direct impact on global supply.
In terms of the latest prices, Reuters noted Brent rising to around US$72.08 and WTI to US$66.88, approaching their highest levels in recent months. These increases reflect more of a risk premium than any actual supply disruptions. (asd)
Source: Newsmaker.id
