Oil Holds Near 7-Month High, Market Awaits US-Iran Talks
Oil prices held near seven-month highs on Wednesday (February 25th), as the market priced in a risk premium ahead of US-Iran talks on Thursday.
At 07:30 GMT, Brent rose 0.6% to $71.19/barrel and WTI gained 0.6% to $66.04/barrel, driven by concerns that an escalation in the conflict could disrupt supply.
Sentiment was dominated by geopolitical issues, after the US increased its military deployment in the Middle East to pressure Iran to halt its nuclear and ballistic missile programs. President Donald Trump also reiterated in his speech that the US would not allow Iran to acquire nuclear weapons, leading the market to believe the risk of conflict remains open, and headlines related to Iran will continue to drive prices.
A third round of talks is scheduled for Thursday in Geneva, involving US envoys Steve Witkoff and Jared Kushner, with the Iranian delegation. Iran stated that a deal is "within reach" if diplomacy is prioritized, but the market is waiting to see whether Iran's concessions will meet US "red lines," including the issue of enrichment.
Beyond geopolitics, the market is also facing fundamental concerns about abundant supplies, especially after API data showed a significant surge in US crude oil inventories of around 11.43 million barrels in the week ending February 20, despite reported declines in gasoline and distillate stocks. Investors are now awaiting official EIA data to confirm the direction of inventories and its impact on short-term price trends.
Source: Newsmaker.id
