Oil treads water as scepticism clouds US-Iran talks

Brent crude’s price is stuck in a wait-and-see pattern amid mounting doubts about the US-Iran peace deal.

IMAGE: Flags of the US and Iran. Getty Images

Crude oil market analysts have flagged the growing ambiguity over peace negotiations between Washington and Tehran, keeping oil prices stuck in a limbo.

Earlier this week, US President Donald Trump reaffirmed that a peace agreement with Iran could be achieved, while maintaining his longstanding position that Tehran will not be allowed to continue uranium enrichment under such a deal.

“This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!” Trump said on social media platform Truth Social.

Shortly after Trump’s statement, Iran’s newly appointed Supreme Leader Mojtaba Khamenei issued an order for uranium-powered weapons to remain within Iran, further complicating the delicate negotiations aimed at ending the Middle East conflict, Reuters reported citing an anonymous Iranian source.

“Uncertainty surrounding a US-Iran deal abounds as we head into the weekend, leaving the market susceptible to seesaw price moves if any fresh noise emerges,” two analysts from ING Bank noted.

Disputes over uranium policy continue to be a central obstacle in negotiations. At the same time, restricted movement through the Strait of Hormuz, uncertain diplomatic progress and lingering conflict-related supply risks are continuing to cast a shadow over the market nearly three months into the war.

“Uncertainty over a potential deal is reflected in oil prices, with the market being whipsawed by headlines,” ING Bank’s analysts said.

By Aparupa Mazumder

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