Oil prices surged significantly on Friday morning following the conclusion of US-Iran talks in Geneva, where no agreement was reached. The US has also initiated evacuations from embassies across the Middle East, further exacerbating concerns in the oil market.
Futures for Brent crude, the international benchmark, surged by 2.9%, trading above $72.90. Meanwhile, the US benchmark West Texas Intermediate (WTI) crude saw a more substantial increase of 3%, surpassing $67. Both commodities are now trading at levels not seen in six months.
During Thursday’s discussions, the US and Iran remained entrenched on several critical issues, despite Oman’s foreign minister, Badr Albusaidi, reporting some progress. The two nations are scheduled to reconvene in Vienna for another round of negotiations, with additional technical teams, including nuclear and banking experts, anticipated to participate.
The situation in the region has grown more tense as the US has ramped up its military presence. An increase in military assets has been deployed to the Gulf, and significant security measures are being enacted for Americans traveling in the area. On Friday, the US embassy in Jerusalem authorized the evacuation of non-essential personnel and their family members, advising them to consider leaving Israel while commercial flights remain available. Reports indicate that the US may also have ordered personnel evacuations from its embassy in Baghdad, although this claim was denied by a State Department spokesperson.
The potential for conflict involving Iran has a direct impact on oil prices, particularly with respect to the Strait of Hormuz—a vital shipping channel through which approximately 20 million barrels of petroleum are transported each day. Given Iran’s control over this strait, threats to close it or retaliate against US actions raise significant concerns among traders and analysts about the stability of oil supplies in the global market.
