Oil prices are trading near a six-month high, influenced by a mix of geopolitical tensions and trade risks. Investors are closely watching US-Iran talks and potential supply disruptions, which are supporting prices despite expectations of a surplus. Renewed trade tensions, signaled by new tariffs, are also factoring into market sentiment.
- WTI crude oil futures are around $66.3 per barrel.
- Investors are monitoring US-Iran talks, with President Trump preferring an agreement but warning of consequences if a deal fails.
- Fears of a potential military conflict in the Middle East and supply disruptions are supporting crude prices.
- Traders are assessing renewed trade risks from new tariffs.
The complex interplay of factors suggests continued volatility in the oil market. Geopolitical risks, particularly concerning Iran, could push prices higher if tensions escalate or supply is disrupted. However, the risk of a trade war and the prospect of a global surplus could limit gains, creating a push-and-pull dynamic in the near term.