Oil Set to Rise Sharply

Oil prices are set to jump sharply when trading resumes Sunday night, as unprecedented U.S. and Israeli strikes on Iran have intensified Middle East tensions and heightened concerns over potential disruptions to global energy supplies. Prices have been supported since the start of the year by persistent geopolitical tensions. On Friday, WTI crude futures climbed to around $67 per barrel, hovering near a seven-month high, as traders reacted nervously to reports that U.S. officials left talks in Geneva disappointed with the lack of progress, even as Iranian and Omani participants struck a more optimistic tone.

WTI crude oil futures rose to around $67 per barrel, near a seven-month high, as the US and Iran agreed to extend nuclear talks into next week, keeping uncertainty high. Traders were nervous because officials familiar with the US position said the US delegation left talks in Geneva disappointed with progress, even as Iranian and Omani participants were more positive. The US also authorised the departure of non-emergency staff and families from Mission Israel, signalling heightened regional tensions and reinforcing risk premia. Prices have been buoyed since the start of the year by these geopolitical risks, which have helped counter broader expectations of a supply glut. Investors are also focused on an upcoming OPEC+ meeting on Sunday to decide oil supply policy, with the market watching for signs of production changes against a backdrop of continued US military deployment in the region. Considering the full month of February, oil is up around 2.5%, extending a 13.6% rally in January.

WTI crude oil futures rose toward $67 per barrel on Friday following a choppy session, on track for a second straight monthly gain after the US and Iran agreed to continue nuclear negotiations next week. Iran described the latest Geneva talks as showing good progress, but a source familiar with the US position said American officials left the negotiations disappointed. Discussions will resume after consultations in each capital, alongside technical-level meetings scheduled next week in Vienna. Tensions persisted as Tehran said it would not allow enriched uranium to leave the country, while a large deployment of US forces in the Middle East kept markets on edge, as President Trump warned of possible military action if the two sides fail to reach an agreement. Meanwhile, traders will closely monitor Sunday’s scheduled OPEC+ supply meeting amid expectations of a broader oil glut.