Tokyo: Global oil prices moved higher as uncertainty over talks between the United States and Iran continued to worry investors, with concerns growing over possible disruptions to supply in the Middle East.
Benchmark crude prices climbed after recent gains, as traders reacted to unclear signals about whether ongoing efforts to ease tensions between the two countries would succeed. US West Texas Intermediate crude traded around the low 90 dollar range per barrel, while Brent crude stayed close to the upper 90 dollar level.
The rise in prices follows a sharp increase earlier, driven by fears that the fragile situation could worsen. Although the United States has said it is extending a ceasefire to allow more time for discussions, it remains uncertain whether Iran will fully take part in the process.
The lack of clarity has made markets nervous. Iran has reportedly not confirmed its involvement in the talks, and tensions remain high due to continued military pressure in the region. This has increased the risk of further escalation.
A major concern for global markets is the Strait of Hormuz, a key route for oil shipments. A large share of the world’s oil passes through this narrow waterway, and any disruption there can quickly affect global supply and prices. Recent tensions have already slowed shipping activity in the area.
Oil prices have shown signs of volatility in recent days, rising sharply and then easing slightly as traders respond to mixed developments. Analysts say the market is now highly sensitive to political news, with even small changes in the situation influencing price movements.
The broader impact is being felt across economies, as higher oil prices can lead to increased fuel costs and inflation. Some estimates suggest that crude prices have risen significantly since the tensions began, adding pressure on both businesses and consumers.
With no clear breakthrough in talks yet, market observers expect oil prices to remain unstable in the coming days, closely tracking any developments in the relationship between Washington and Tehran.