Oil prices climbed on Friday after talks between the United States and Iran over Tehran’s nuclear program ended without a clear agreement, sparking concerns about potential supply disruptions from the Middle East. Heightened geopolitical risks lifted crude benchmarks as traders weighed the possibility of conflict affecting global energy flows.
At 07:50 ET (12:50 GMT), Brent oil futures for April delivery jumped about 2.4% to around $72.54 a barrel, while West Texas Intermediate (WTI) crude rose roughly 2.6% to $66.89 a barrel. Both contracts were positioned to deliver strong monthly gains, driven by solid buying on fears of tightening supplies amid escalating tensions.
Iran-U.S. Talks Stall, Risk Premium Grows
Diplomatic negotiations over Iran’s nuclear ambitions concluded on Thursday with no breakthrough deal, leaving a stalemate that has boosted risk sentiment across oil markets. Despite plans for further technical discussions in Vienna, unresolved differences and continued military buildup in the region have kept geopolitical risk premiums elevated.
Analysts have noted that the backdrop of possible escalation near the Strait of Hormuz — a crucial shipping corridor for global oil flows — is contributing to higher crude prices. Any significant disruption in the strait could tighten supply and push prices even higher.
Venezuela Oil Sales Add Supply Outlook
In contrast to Middle East supply concerns, crude exports under a new U.S.–Venezuela oil deal are expected to increase sharply. According to U.S. officials, oil sales linked to this agreement could reach around $2 billion by the end of February as Venezuelan production ramps up and global trading firms help place barrels into markets in Asia and Europe.
The resumption of Venezuelan crude into international markets marks a significant boost to global supply, a shift that may help offset some geopolitical risk, though concerns about oversupply in 2026 have weighed on price forecasts in recent months.
Overall, rising Middle East tensions and stalled nuclear talks are lifting oil prices this week, while increased Venezuelan exports could balance supply dynamics in the months ahead.
