WTI crude oil futures traded near $66.20 per barrel on Tuesday, hovering around a six-month high as investors closely watched a new round of negotiations between the United States and Iran. President Trump said Monday that he would prefer to reach an agreement with Tehran, with talks scheduled to resume on Thursday, but he also warned of a “very bad day” for Iran if a nuclear deal fails to materialize. He further dismissed reports that the Pentagon is worried a prolonged military campaign against Iran would entail major risks.
Heightened concerns about a possible military confrontation between the two countries, together with several recent supply disruptions, have underpinned crude prices in recent weeks, counterbalancing expectations of a substantial surplus this year. At the same time, traders are weighing renewed trade risks as Trump moves to introduce fresh tariffs after the Supreme Court struck down many of his existing global levies.
