Oil prices edge higher on rising US–Iran tensions
Oil prices posted modest gains in early Thursday trading as investors monitored escalating tensions between the United States and Iran, weighing geopolitical risks against rising U.S. crude inventories.
By 01:26 GMT, Brent crude futures were up 34 cents, or 0.49 percent, at 69.74 dollars per barrel. U.S. West Texas Intermediate crude advanced 37 cents, or 0.57 percent, to 65 dollars per barrel. Both benchmarks had closed higher in the previous session, with Brent rising 0.87 percent and WTI gaining more than 1.05 percent.
In regional markets, the price of Kuwaiti crude rose by 1.22 dollars to reach 66.40 dollars per barrel in the latest trading session, reports Al-Rai daily.
Market sentiment was shaped largely by uncertainty surrounding Washington’s approach to Tehran. U.S. President Donald Trump said no “definitive” decision had been reached regarding Iran, though negotiations would continue.
Earlier, Trump indicated he was considering deploying a second aircraft carrier to the Middle East if diplomatic efforts fail, as Washington and Tehran prepare to resume discussions.
American and Iranian diplomats held indirect talks in Oman last week, but officials have yet to announce the date or venue of the next round.
Analysts said further escalation in the Middle East would be required for oil prices to move decisively above the 65-to-66-dollar range. Conversely, any easing of tensions could prompt profit-taking, potentially pulling West Texas Intermediate crude back toward the 60-to-61-dollar level.
Support for prices also came from signs of strength in the U.S. economy. The Labor Department reported that job growth accelerated unexpectedly in January, while the unemployment rate fell to 4.3 percent, indicating resilient economic conditions. Analysts noted that sustained economic momentum in the United States underpins the outlook for oil demand.
However, gains were capped by a sharp rise in U.S. crude inventories. Data from the Energy Information Administration showed that stockpiles increased by 8.5 million barrels to 428.8 million barrels last week, significantly exceeding market expectations for an increase of about 793,000 barrels.
Market participants also continue to monitor tightening sanctions on Russian oil exports, which, alongside geopolitical tensions, could lend further support to prices in the near term.
