Global energy markets showed restrained dynamics after the conclusion of negotiations in Geneva, where Washington and Tehran agreed to continue discussions on the nuclear program next week. Despite diplomatic efforts, oil prices remain under pressure due to the unprecedented build-up of US military presence in the Middle East. This was reported by Reuters, writes UNN.
Details
West Texas Intermediate (WTI) crude oil stabilized at around $65 per barrel, while Brent prices fluctuated below $71 after the close of trading on Thursday.
Iranian officials publicly state "good progress" in the discussions, but sources close to the American delegation report Washington's disappointment with the meeting's results. The parties agreed to move the negotiation process to Vienna, where technical experts will try to reconcile positions on limiting uranium enrichment and lifting sanctions.
Military factor and impact on energy security
The market situation remains tense due to President Donald Trump's order for the largest deployment of combat forces in the region since 2003. Direct threats of military strike in case of diplomatic failure force investors to weigh the probability of disruptions in raw material supplies through key sea lanes.
Although the White House hints at prioritizing a peaceful settlement, the presence of a US aircraft carrier group in the Arabian Sea creates an atmosphere of uncertainty that prevents oil prices from falling significantly even with stable production.