Oil Prices Jump as Geopolitical Tensions Stoke Supply Fear
Oil prices rose on Tuesday amid renewed concerns that escalating tensions between Iran and Israel could disrupt energy supplies from the Middle East. Brent crude increased by around 1.84%, trading at $73.46 per barrel, up from $72.13 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 1.97%, settling at $71.39 per barrel, compared to $70.01 in the prior session.
Prices retreated to $69.96 on Monday following reports that Iran was seeking to de-escalate hostilities and resume nuclear negotiations with the US. However, prices rebounded after US President Donald Trump called for the evacuation of Iranian capital Tehran.
“Iran should have signed the ‘deal’ I told them to sign. What a shame and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again!” Trump said on his Truth Social platform.
“Everyone should immediately evacuate Tehran!” he added. The White House said Trump would leave the G7 summit in Canada early to return to Washington. “I have to be back early for obvious reasons,” Trump told reporters. “You probably see what I see, and I have to be back as soon as I can.”
Fox News reported that Trump instructed the National Security Council to convene in the White House situation room. The latest developments lifted prices by heightening concerns over supply disruptions in the Middle East, home to most of the world’s oil reserves.
Meanwhile, the US is discussing with Iran the possibility of a meeting this week between US envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi, the Axios news site reported Monday.
Citing four sources briefed on the issue, Axios said the objective would be to discuss a diplomatic initiative involving a nuclear deal and an end to the war between Israel and Iran.
Tensions have escalated since Friday, when Israel launched coordinated airstrikes and drone attacks on multiple sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes. #Oil Prices Jump as Geopolitical Tensions Stoke Supply Fear
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