Khaberni - Oil prices approached their highest levels in 7 months on Tuesday, amid rising speculation about the possibility of the United States striking Iran, concurrent with the approach of a final round of talks that analysts believe have limited chances of success.
Following gains recorded during the Asian transactions, West Texas Intermediate and Brent crude, the two main benchmarks for crude oil, neared equilibrium. However, the prices remained hovering near their 7-month high as traders evaluated the chances of a new American military campaign against Iran.
Brent crude futures rose 8 cents, or 0.1%, to $71.57 per barrel, and West Texas Intermediate futures increased by 18 cents or 0.3% to $66.49 per barrel.
According to "Oil Price" website, prices saw a slight decline after Monday's trading settlement, after Iran hinted at the possibility of reaching a diplomatic solution in the framework of tense negotiations.
On the other hand, the U.S. Supreme Court's decision to cancel the "retaliatory tariffs" imposed by President Donald Trump on several countries renewed market worries about the future of trade and global economies. This prompted some traders and speculators to move towards safe assets, such as gold, and away from higher-risk asset classes, including crude oil.
As a crucial round of indirect talks between the United States and Iran nears in Geneva on Thursday, the repercussions of the tariff issue are likely to temporarily recede, despite President Trump's insistence on proceeding with imposing new comprehensive tariffs of 15% for the rest of the week, emphasizing the need for “the world to pay for exploiting the United States.”
In this context, analysts began evaluating scenarios of the oil barrel price rising to $100 before the talks start.
The "Guardian" newspaper quoted the honorary president of the energy markets consulting firm FGE NexantECA, Fereidun Fesharaki, telling Bloomberg TV on Monday that the rise of oil prices to a range between $90 and $100 per barrel is becoming “a feasible possibility” as the US and Iran approach the brink of confrontation.
James Hosey, a research analyst at "Shore Capital", said that oil markets "logically seek to price a risk premium, in light of the potential disruptions that any conflict might cause in global supplies."
Phillip Nova's senior market analyst, Priyanka Sachdeva, explained that "the risks of military escalation in the Middle East are increasing, and therefore traders are hedging for the worst scenarios." She added that the current price levels are "largely driven by expectations and speculation, more than being the result of an actual shortage in supplies."
According to Oman's Foreign Minister on Sunday, a third round of nuclear negotiations is scheduled to take place between Washington and Tehran in Geneva next Thursday.
These negotiations indicate the belief of President Donald Trump's team that Iran might be ready to reduce its stockpile of highly enriched uranium and abandon its nuclear program, which Tehran denies, asserting that it does not seek to develop nuclear weapons.
In a post on the "Truth Social" platform on Monday, Trump warned that failure to reach an agreement would be "a tough day" for Iran.
Before the start of the negotiations, both sides demonstrated their military strength, as the United States bolstered its military presence in the Middle East over the weekend.
The American aircraft carrier "USS Gerald R. Ford" arrived at the Greek island of Crete on Monday, while the "USS Abraham Lincoln" is positioned in the Arabian Sea near Oman, carrying fighter jets and more than 5630 sailors, a clear indicator of the escalating level of military readiness in the region.
