Oil Prices Rise on U.S.-Iran Tensions

Oil prices rose on Thursday as investors worried about escalating tensions between the U.S. and Iran. Brent crude futures increased 34 cents, or 0.49%, reaching $69.74 per barrel at 0126 GMT. Meanwhile, U.S. West Texas Intermediate crude rose 37 cents, or 0.57%, to $65.00. Both benchmarks had already closed higher on Wednesday, with Brent gaining 0.87% and WTI climbing more than 1.05%. Market fears over U.S.-Iran relations outweighed concerns about rising U.S. crude inventories.

U.S. President Donald Trump said he and Israeli Prime Minister Benjamin Netanyahu reached no “definitive” agreement on Iran. He emphasized that negotiations with Tehran would continue. On Tuesday, Trump suggested sending a second aircraft carrier to the Middle East if talks fail. U.S. and Iranian diplomats recently held indirect talks in Oman. Officials have not yet announced the date or venue for the next round of negotiations.

Analysts said oil prices could rise further if Middle East tensions escalate. IG analyst Tony Sycamore noted that a sustained break above $65–$66 in WTI requires more conflict. Conversely, any de-escalation could trigger profit-taking and push prices back toward $60–$61. Investors are closely watching the region as geopolitical events heavily influence oil markets.

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Economic signals from the U.S. also support oil demand expectations. U.S. job growth unexpectedly accelerated in January, and the unemployment rate fell to 4.3%. Mingyu Gao, chief researcher at China Futures, said the strong economy strengthens oil demand forecasts. Despite rising U.S. crude inventories, the market remains optimistic. Last week, U.S. crude stockpiles surged by 8.5 million barrels, far exceeding forecasts of 793,000 barrels.

Gao added that global oil inventory builds have generally been below expectations this year. Net long positions in overseas crude futures and options remain moderate. Tightened sanctions on Russian oil and expected lower exports support higher oil prices. Overall, the market likely remains biased to the upside, driven by geopolitical risks and steady economic growth.