WTI crude oil futures are trading near a six-month high, around $66.5 per barrel, as the market grapples with conflicting signals. Potential progress in US-Iran nuclear talks is weighed against the risk of renewed tariffs and ongoing concerns about supply disruptions in the Strait of Hormuz.
- WTI crude oil futures are around $66.5 per barrel, close to a six-month high.
- US-Iran nuclear deal negotiations are ongoing, with a potential “win-win” solution in sight.
- US envoy Steve Witkoff is expected to meet with Iran’s foreign minister in Geneva.
- Reports suggest any US military strike on Iran would be limited, reducing the risk of widespread supply disruptions.
- The Strait of Hormuz remains a key concern for regional crude exports due to potential traffic risks.
- President Trump plans to raise global tariffs to 15% following a Supreme Court ruling.
- Increased tariffs could fuel renewed risks to the oil demand outlook.
The oil market is currently navigating a complex landscape of potential risks and opportunities. The possibility of increased supply should a US-Iran nuclear agreement be reached is countered by the risk of decreased demand due to higher tariffs and persistent geopolitical instability in a crucial oil-exporting region. These factors contribute to price volatility and uncertainty in the market.