FX.co ★ Brent Rises as Easing US-EU Trade Tensions Outweigh Supply Concerns

Brent crude oil futures increased to approximately $64.7 per barrel on Tuesday, influenced by relieved US-EU trade tensions which counterbalanced concerns over a potential rise in OPEC+ oil supply. On Sunday, US President Trump agreed to postpone the implementation of 50% tariffs on European imports until July 9, alleviating fears that such tariffs might reduce fuel demand. Concurrently, OPEC+ members are scheduled to convene later this week, likely to finalize production targets for July. Reports suggest a possible output increase of 411,000 barrels per day. Earlier this month, the alliance agreed to quicken production increments for a second consecutive month in June. On the geopolitical stage, Iran announced on Monday that it would not halt uranium enrichment as part of any nuclear agreement with the US, following hints from Trump that a deal might be forthcoming. Furthermore, Iranian President Masoud Pezeshkian expressed confidence that Iran would manage if no agreement is reached. A breakdown in discussions would mean the continuation of sanctions on Iran, limiting its oil exports and lending support to oil prices.