Oil hovers below seven-month high as traders eye U.S.–Iran talks, trade policy

Oil Market Overview - Oil prices are currently hovering below a seven-month high, with Brent crude futures at $71.40 per barrel and U.S. crude futures at $66.20 per barrel, following a volatile trading session [1] - Brent crude reached a peak of $72.50, the highest since July 31, while U.S. crude hit $67.28, the highest since August 4 [1] U.S.-Iran Nuclear Talks - Traders are closely monitoring the resumption of U.S.-Iran nuclear talks, which are set to take place in Geneva, as tensions in the Middle East rise [1] - The U.S. aims for Iran to abandon its nuclear program, while Iran denies any intentions of developing an atomic weapon [1] Trade Policy Uncertainty - U.S. President Trump has warned countries against retracting from recently negotiated trade deals, indicating potential for increased tariffs following the Supreme Court's decision to strike down emergency tariffs [1] - Trump announced a temporary tariff increase from 10% to 15% on U.S. imports from all countries, the maximum allowed under current law [1] Geopolitical Tensions - Concerns about military conflict with Iran have led the U.S. State Department to withdraw non-essential personnel from the embassy in Beirut [1] - Ukrainian drones have targeted a Russian pumping station linked to the Druzhba oil pipeline, further complicating the geopolitical landscape [1] Market Sentiment - Analysts suggest that crude oil remains at the upper end of the $55–$66.50 trading range, with potential for further gains towards $70.00–$72.00 if prices break above this range [1] - Conversely, any signs of de-escalation in tensions could lead to a price retracement towards $61.00 [1]