Oil nears 7 month high amid US–Iran tensions and trade uncertainty

Oil prices climbed on Tuesday, hovering near their highest levels in seven months, as investors weighed rising geopolitical tensions ahead of fresh nuclear talks between the United States and Iran, alongside renewed uncertainty over US trade policy.

Brent crude futures rose 59 cents, or 0.8 percent, to $72.08 a barrel in early trading, marking their strongest level since late July. US West Texas Intermediate crude gained 57 cents, or 0.9 percent, to $66.88 a barrel, its highest since early August.

Analysts said geopolitical concerns were the main driver behind the latest gains.

“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 Priyanka Sachdeva, senior market analyst at Phillip Nova. She added that fears of possible military escalation in the Middle East were prompting traders to hedge against worst-case scenarios.

Washington and Tehran are set to hold a third round of nuclear talks on Thursday in Geneva, according to Oman’s foreign minister. The United States has demanded that Iran abandon its nuclear programme, a demand Tehran has rejected, insisting it is not pursuing nuclear weapons.

The US State Department said it is withdrawing non-essential personnel and their families from the US embassy in Beirut amid concerns about a potential military confrontation with Iran.

President Donald Trump warned in a social media post that it would be a “very bad day” for Iran if no agreement is reached.

Market analysts noted that crude prices are currently trading at the upper end of a $55–$66.50 range that has defined the market over the past six months. A sustained move above this range could open the way for further gains toward $70–$72, while signs of de-escalation could trigger a pullback toward $61.

Trade policy uncertainty has also added to broader market unease. Trump warned countries against stepping back from recently negotiated trade deals after the US Supreme Court struck down his emergency tariffs, saying he could impose higher duties under alternative legal authorities.

He also announced plans to raise a temporary tariff on US imports from all countries from 10 percent to 15 percent, the maximum level permitted under the relevant law, a move analysts say could cloud the outlook for global growth and fuel demand.