Oil Prices Edge Up Amid US-Iran Nuclear Talks and Supply Concerns
Oil prices moved slightly higher on Wednesday, though the advance remained limited as traders balanced cautious optimism over US-Iran nuclear discussions with ongoing supply concerns. Brent crude rose 0.2 percent to $67.09 per barrel, while West Texas Intermediate gained 0.2 percent to $62.32 per barrel in early trading.
Markets React to US-Iran Negotiations
Investor attention centered on remarks from US Vice President JD Vance, who described the second round of talks with Iran as productive in certain respects. However, he noted that Tehran has yet to engage on specific red lines outlined by President Donald Trump. Vance emphasized that preventing Iran from obtaining a nuclear weapon remains Washington’s primary objective.
Diplomatic Signals from Both Sides
Iran’s delegation, led by Foreign Minister Abbas Araghchi, reported progress during discussions in Geneva and described the atmosphere as more constructive. Both sides agreed to begin drafting a potential agreement and to exchange texts before scheduling the next phase of negotiations. Iranian officials indicated that the path forward appears positive from their perspective.
Background of Renewed Talks
Earlier discussions were hosted by Oman in Muscat in February, marking the first engagement since US strikes targeted Iranian nuclear facilities in June. Since then, President Trump has ordered an increased US military presence in the region while pressing Tehran to reach a deal.
Cautious Market Sentiment
Despite signs of diplomatic movement, traders have refrained from pricing in a full reduction of geopolitical risk. A lasting agreement could eventually influence Iran’s oil export outlook, but uncertainty over the outcome continues to cap gains in crude markets.
Ukraine-Russia Talks Also in Focus
Separately, US special envoy Steve Witkoff confirmed that Ukraine and Russia agreed to continue negotiations following a third round of trilateral talks in Geneva. The meetings, hosted by Switzerland, concluded without major breakthroughs, though both sides committed to updating their leaders and pursuing further dialogue.
Potential Impact on Energy Markets
Analysts suggest that any significant geopolitical shift could introduce additional volatility and a potential risk premium into oil prices. For now, traders are closely monitoring diplomatic developments.
Attention Turns to US Inventory Data
Market participants are also awaiting fresh US crude inventory figures. Data from the American Petroleum Institute is expected later Wednesday, followed by the Energy Information Administration’s official report on Thursday, both of which could influence short-term price direction.
