Oil prices continued to climb in Asian trading on Tuesday, building on Monday’s gains. This comes as rising geopolitical tensions and disruptions in key oil-producing areas spark concerns about global supply.

Iran Nuclear Deal Uncertain

Talks between Iran and the U.S. over a nuclear agreement remain unclear. While reports suggested the U.S. might allow Iran to enrich uranium, President Donald Trump firmly stated that no enrichment would be permitted. If no deal is reached, strict sanctions on Iranian oil exports will stay in place, limiting global oil supply.

Ukraine-Russia Tensions Add Pressure

The Ukraine-Russia conflict intensified after a deadly Ukrainian drone strike in Russia. Meanwhile, peace talks failed to make progress. The U.S. is considering stronger sanctions against Russia’s energy sector, which may include penalising major buyers like China and India. This adds to fears of supply disruptions.

Canadian Wildfires and OPEC+ Moves

Wildfires in Alberta, Canada—one of the country’s key oil-producing regions—threaten to cut output. However, OPEC+ has agreed to increase oil production as expected, offering some balance to the market.

Read More, Government Reduces Import Duty on Crude Edible Oils to 10%. 

Market Reaction

By early Tuesday, Brent crude rose by 0.8% to $65.17 a barrel, and West Texas Intermediate (WTI) gained 0.9% to $62.04 a barrel, reflecting the growing supply concerns.

Conclusion

With multiple global events affecting oil supply—from stalled nuclear talks to worsening conflicts and natural disasters—oil prices are likely to remain volatile. Investors should closely monitor geopolitical developments and policy decisions in the coming weeks.

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