Oil Holds Near 7-Month High, Market Wary of US-Iran
Oil prices held near seven-month highs on Tuesday (February 24th), as market participants assessed the risk of supply disruptions in the event of a military escalation ahead of a new round of nuclear talks between the United States and Iran. Price movements were limited, but remained in high territory due to the continued strength of geopolitical premiums.
Brent futures edged up 0.1% to US$71.57 per barrel at 12:51 GMT, while WTI gained 0.3% to US$66.49 per barrel. Brent is at its strongest level since late July, while WTI is at its most solid level since early August.
Market focus is on the third round of US-Iran nuclear talks scheduled for Thursday in Geneva, as announced by Oman's Foreign Minister. The US is pushing Iran to halt its nuclear program, while Iran has refused and reiterated its non-conformity to developing nuclear weapons.
Tensions escalated after the US State Department withdrew non-essential personnel and their families from the US Embassy in Beirut, amid concerns about the risk of conflict. Meanwhile, sources also reported that Iran was close to reaching a deal with China for the purchase of anti-ship cruise missiles, reinforcing market concerns that security risks in the region could worsen.
US President Donald Trump added to the market's psychological pressure by warning that it would be a "very bad day" for Iran if a deal was not reached. The SEB believes the primary risk now is not war as a baseline scenario, but rather the potential for escalation that is difficult to reverse when market positions and expectations are already high—a dynamic that maintains a geopolitical premium on oil prices.
Beyond geopolitics, the market is also considering the impact of US trade policy. US Customs and Excise said new tariffs of 10% would go into effect on Tuesday on goods not covered by exemptions, instead of the previously promised 15%. This tariff uncertainty could add to volatility as it could potentially impact global growth prospects and energy demand, keeping oil prices in a tug-of-war between geopolitical premiums and demand concerns.
Source: Newsmaker.id
