Oil Futures Edge Higher in Early Asian Trade Amid U.S.–Iran Tensions

Oil prices ticked up in early Asian trading on renewed geopolitical concerns, as escalating tensions between the United States and Iran raised the prospect of potential supply disruptions in the Middle East.

Front-month West Texas Intermediate (WTI) crude futures rose 0.1% to $66.50 per barrel, while front-month Brent crude gained 0.2% to $71.78 per barrel, reflecting cautious buying interest.

Diplomatic Deadline Adds Risk Premium

According to analysts at Commerzbank Research, market sentiment was supported after President Donald Trump signaled a limited window for nuclear negotiations with Iran.

Trump indicated that 10–15 days would be “pretty much” the maximum time allowed for talks to continue regarding Iran’s nuclear program. He reportedly stated, “We’re either going to get a deal, or it’s going to be unfortunate for them.”

Analysts noted that the U.S. military continues to strengthen its presence in the Middle East, heightening the geopolitical risk premium embedded in oil prices.

Supply Risk in Focus

The Middle East accounts for a significant share of global crude exports, and any escalation that disrupts shipping lanes or production infrastructure could tighten supply balances.

While price gains remain modest, traders are positioning cautiously ahead of potential diplomatic developments. The market is closely monitoring whether negotiations proceed or whether tensions escalate further.

Market Outlook

Oil’s near-term direction will likely hinge on:

• Progress or breakdown in U.S.–Iran nuclear negotiations

• Military developments in the region

• Broader macroeconomic sentiment and demand signals

For now, crude futures are holding a mild upward bias, supported by geopolitical uncertainty but restrained by broader market caution.