Oil prices surged on Friday morning following the conclusion of US-Iran talks in Geneva, which ended without an agreement. Concurrently, the United States initiated evacuation orders from embassies in the Middle East, further fueling market anxiety. Brent crude futures, a key international benchmark, increased by 2.9%, trading above $72.90, while West Texas Intermediate (WTI) futures rose by 3%, surpassing $67. Both crude oil prices reached six-month highs, reflecting growing concerns around regional tensions.
Discussions in Geneva between the US and Iran remained contentious, with both sides failing to bridge significant gaps on crucial issues. Despite the lack of a deal, Oman’s foreign minister, Badr Albusaidi, who is mediating the negotiations, claimed that some progress had been made. The next round of talks is scheduled to take place in Vienna, where technical experts in nuclear and banking matters will join the discussions.
In parallel to the diplomatic efforts, the US ramped up its military presence in the region, sending additional combat assets to the Gulf as part of heightened security measures for American personnel. The US embassy in Jerusalem announced an authorization for the evacuation of non-essential staff and their families, advising them to consider leaving Israel while commercial flights remained available. Though there were reports indicating a similar evacuation order for the US embassy in Baghdad, a State Department spokesperson refuted these claims on social media.
The volatility of oil prices reflects the market’s sensitivity to potential conflicts involving Iran, particularly concerning the Strait of Hormuz. This vital waterway, through which approximately 20 million barrels of oil are transported daily, is strategically essential for global energy supplies. Iran’s control over the strait has led to threats of closure and severe retaliation against US military actions, further heightening concerns among traders and investors.
