Oil Hovers Near 6-Month High

WTI crude oil futures hovered around $66.3 per barrel on Tuesday, close to a six-month high, as investors closely monitor a new round of talks between the US and Iran. President Trump said on Monday that he would prefer reaching an agreement with Iran, with talks set to resume on Thursday, but warned of a “very bad day” for Tehran if a nuclear deal fails to materialize. Trump also dismissed reports suggesting that the Pentagon is concerned about the risks of a prolonged military campaign against Iran. Fears over a potential military conflict in the Middle East, along with several supply disruptions, have supported crude prices in recent weeks, offsetting expectations of a sizable surplus this year. Meanwhile, traders are also assessing renewed trade risks, as Trump's new 10% global tariff went into effect today.

WTI crude oil futures held around $66.5 per barrel on Monday, near a six-month high, as investors weighed the likelihood of a US–Iran nuclear deal, with further negotiations expected later this week. Iran’s foreign minister said a diplomatic “win-win” solution is within reach and confirmed plans to meet US envoy Steve Witkoff in Geneva. At the same time, reports indicated that any US military strike on Iran would be limited to select military or government sites, reducing the risk of broad supply disruptions. Traders remained mainly concerned about potential traffic risks through the Strait of Hormuz, a key corridor for regional crude exports. Also, President Donald Trump plans to raise global tariffs to 15% following the Supreme Court’s rejection of “reciprocal tariffs,” fueling renewed risks to the oil demand outlook.

WTI crude oil futures fell below $66 per barrel on Monday, retreating slightly from a six-month high, as investors weighed the likelihood of a US–Iran nuclear deal, with further negotiations expected later this week. Iran’s foreign minister said a diplomatic “win-win” solution is within reach and confirmed plans to meet US envoy Steve Witkoff in Geneva. At the same time, reports indicated that any US military strike on Iran would be limited to select military or government sites, reducing the risk of broad supply disruptions. Traders remained mainly concerned about potential traffic risks through the Strait of Hormuz, a key corridor for regional crude exports. Adding to bearish sentiment, President Donald Trump plans to raise global tariffs to 15% following the Supreme Court’s rejection of “reciprocal tariffs,” fueling renewed risks to the oil demand outlook.