Oil prices gained on Wednesday, supported by heightened geopolitical risk as U.S.–Iran negotiations remained delicate and signs of stronger demand from India eased supply concerns.
Brent crude futures rose 55 cents, or 0.8%, to $69.35 per barrel by 0356 GMT, while U.S. West Texas Intermediate (WTI) crude increased 57 cents, or 0.89%, to $64.53.
Analysts at LSEG noted that oil continues to benefit from a “bullish tail-risk bid” due to fragile U.S.–Iran talks, which keep the Strait of Hormuz risk premium elevated amid ongoing sanctions, trade tensions, and heightened U.S. regional military presence.
Iran’s foreign ministry spokesperson confirmed that nuclear discussions with the U.S. provided insight into Washington’s seriousness and allowed for sufficient consensus to continue diplomatic efforts. Last week, officials from both nations met in Oman to revive dialogue, following U.S. deployment of a naval flotilla in the region.
Although oil prices initially eased after Oman’s foreign minister described the talks as productive, optimism faded after reports suggested the U.S. might dispatch a second aircraft carrier to the Middle East if negotiations fail, according to ANZ analysts.
