Brent crude oil climbed to around $71.1 per barrel on Wednesday, shaking off two days of losses, as traders balanced geopolitical fears with trade uncertainties.
The Strait of Hormuz, a narrow, strategic chokepoint carrying nearly 20% of the world’s oil, remains the world’s nervous spot, where even a small escalation could ripple through global markets.
The surge comes ahead of a critical third round of US-Iran nuclear talks. President Trump, in his State of the Union address, urged diplomacy but also warned that Iran was rebuilding its nuclear program and developing missiles capable of reaching the US. Iran’s deputy foreign minister responded by pledging to do “whatever it takes” to secure a deal.
On top of this, US trade moves are keeping markets on edge. Trump’s 10% global tariff went into effect Tuesday, with plans to hike it to 15%, leaving traders weighing how these measures could affect global oil demand.
Markets remain on edge as oil investors weigh supply risks, diplomatic talks, and tariff pressures, with global eyes fixed on which way prices will swing.
