Crude Oil Prices Ease as Markets Weigh Iran Talks and Trade Uncertainty

Crude oil prices hovered just below multi-month highs on Tuesday as investors balanced geopolitical risks in the Middle East with fresh uncertainty surrounding U.S. trade policy. While recent gains reflected tightening supply concerns, markets turned cautious as traders assessed diplomatic developments and tariff signals from Washington.

Brent crude futures slipped 9 cents, or 0.1%, to US$71.40 a barrel after touching US$72.50 on Monday, the highest level since late July. U.S. crude futures fell 11 cents, or 0.2%, to US$66.20, following a session high of US$67.28, the strongest since early August.

Iran Nuclear Talks Keep Traders on Edge

A key factor supporting crude oil prices has been the resumption of nuclear talks between the United States and Iran. The two countries are set to hold a third round of negotiations in Geneva this week.

Washington has reiterated its demand that Iran abandon its nuclear program, while Tehran maintains that its activities are peaceful and has firmly rejected giving up its program. The situation has added to concerns about potential supply disruptions from the Middle East, a region critical to global energy markets.

Heightened tensions were further underscored by the U.S. decision to withdraw non-essential personnel from its embassy in Beirut, amid fears of possible military escalation.

Trade Policy Adds to Volatility in Crude Oil Prices

In addition to geopolitical risks, traders are closely monitoring U.S. trade policy. President Donald Trump warned that countries backing away from negotiated trade agreements could face significantly higher tariffs. He also signaled plans to increase a temporary tariff on imports from 10% to 15%.

Such measures could weigh on global economic growth, potentially dampening oil demand. Renewed trade tensions have therefore capped further upside in crude oil prices, despite supply-side risks.

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Conclusion

For now, crude oil prices remain caught between geopolitical risk premiums and economic uncertainty. With Iran talks ongoing and trade policy developments unfolding, markets are likely to stay volatile in the near term as investors await clearer signals on both supply and demand dynamics.

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