Oil prices remained stable as markets balanced U.S. tariff threats with rising Middle East tensions. WTI fluctuated within a $2.50 range before settling near $68. Prices briefly rose on reports of possible Israeli military action against Iran, while President Trump’s tariff comments dampened investor risk appetite.
Iran’s recent threats pushed oil prices out of a month-long narrow range, underscoring oil’s vulnerability to geopolitical risks. With the Middle East accounting for about a third of global supply, prices have climbed 12% this month. JPMorgan warns crude could hit $130 in a worst-case scenario. Market volatility surged, with bullish Brent options outpacing bearish ones.
Despite this, oil remains down for the year due to trade war concerns and increased OPEC+ output. As U.S.-Iran nuclear talks continue, Iran’s Revolutionary Guard signals readiness for conflict, while Tehran plans a new proposal ahead of talks in Muscat.RBC Capital Markets analysts, including Helima Croft, said the U.S. move to withdraw non-essential embassy staff from Baghdad, Bahrain, and Kuwait signals a rising threat level in the Middle East.
