Oil prices rose on Tuesday, nearing seven-month highs, with traders assessing risks to supply from any military escalation as another round of United States (US), Iran nuclear talks loomed.
Brent crude futures rose 48 cents, or 0.7%, to $71.97 a barrel, while US crude futures climbed 45 cents, or 0.7%, to $66.76 a barrel.
Brent is trading at its highest since July 31, while West Texas Intermediate is at its firmest since August 1.
“At this stage, geopolitics is clearly doing most of the heavy lifting for oil prices, with the current firmness largely driven by anticipation rather than actual supply loss,” said Phillip Nova Senior Market analyst Priyanka Sachdeva.
“The risk of possible military escalation in the Middle East is gaining traction, and thus, traders appear to hedge against worst case scenarios.”
Iran and the US will hold a third round of nuclear talks on Thursday in Geneva, Oman’s Foreign Minister Badr Albusaidi said on Sunday.
The US wants Iran to give up its nuclear programme, but Iran has adamantly refused, and denied it is trying to develop an atomic weapon.
–Reuters–
