Oil Prices Hover Near Highs Amid Iran Tensions

Oil prices steadied near recent highs, with crude trading around $66.38 as geopolitical tensions in the Middle East continued to support a supply-driven risk premium. Brent futures also hovered near multi-month highs, reflecting ongoing concerns about potential disruptions to global oil flows.

Much of the recent rally has been linked to uncertainty surrounding Iran-US nuclear negotiations. Markets are closely watching the upcoming round of talks in Geneva, where the potential for escalation or diplomatic progress could significantly influence crude pricing. The risk of supply instability in a key energy-producing region remains the primary driver of current strength.

However, analysts at UBS expect that if tensions ease and supply risks diminish, oil could gradually drift back toward the $60–$70 range. This suggests that a portion of the current pricing reflects geopolitical uncertainty rather than structural supply tightness.

Technically, crude remains in a constructive uptrend, with prices holding above key moving averages and testing resistance near the $67 region. A sustained breakout could open the path toward $68.50–$70.00, while easing geopolitical rhetoric may prompt a retracement toward mid-$60 support levels.

For now, oil’s trajectory hinges largely on developments in Geneva. The embedded risk premium remains intact, but its durability will depend on whether diplomacy stabilises or tensions intensify.

Read more on how Iran-US negotiations and geopolitical risk could shape oil’s next move.