Brent crude oil futures hovered around $71.5 per barrel on Tuesday, approaching a six-month peak as investors monitored a mix of geopolitical tensions and trade risks.
Markets focused on the resumption of US-Iran nuclear negotiations this Thursday. President Donald Trump said he prefers a negotiated deal but warned Tehran of a “very bad day” if talks fail, dismissing Pentagon concerns about the risks of a prolonged military campaign.
Supply disruptions and fears of a potential conflict in the Middle East have bolstered crude prices, countering expectations of a global oil surplus later this year.
Trade uncertainties added to market pressure as Trump’s 10% global tariff went into effect on Tuesday, signaling a renewed push on his trade agenda.
Analysts note that investors remain cautious, recalibrating forecasts amid the intersection of Middle East tensions and US trade policies.
Brent prices are expected to remain volatile in the coming weeks, sensitive to both geopolitical developments and shifts in international trade dynamics.