DTN Oil Update
Oil Prices Back at 7-Month High as Middle East Tensions Spike
VIENNA (DTN) -- Oil and product prices regained their upward momentum Friday as limited progress in U.S.-Iran nuclear talks and evacuations by Washington of diplomatic staff and their families in the Middle East raised expectations of an imminent military strike on Tehran.
The market pivot, which took crude futures back to seven-month highs after an ease in geopolitical tensions in recent days, came as multiple outlets reported that U.S. President Donald Trump was set to convene with senior advisors later in the day to discuss the potential of limited strikes on Iranian military and nuclear facilities.
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Reactions to the latest round of the nuclear talks in Geneva on Thursday were mostly positive even as U.S. envoys Jared Kushner and Steve Witkoff initially said they were "disappointed" after the first half of the negotiations. Iranian foreign minister Abbas Araghchi claimed "good progress" in the talks, which he said focused on sanctions relief and Iran's nuclear program. The parties agreed to meet in Vienna next week to continue negotiations.
Despite the ongoing diplomatic effort, the risk of a U.S. strike on Iran remained elevated as Trump's "10 to 15 day" deadline from last week for Iran to reach a deal with White House-appointed negotiators inched closer.
Washington, meanwhile, continued to pull diplomatic and military personnel from areas within striking range of Iran and its proxies, as U.S. forces amassed the largest military presence in the Middle East since the invasion of Iraq in 2003.
The U.S also called on its citizens to leave Israel. Separately, China issued on Friday a travel alert for Iran, urging Chinese citizens to leave the country as soon as possible.
NYMEX WTI crude futures for April delivery were up $2.36 at $67.57 bbl. The session peak of $67.83 was the highest since Aug. 1, when it reached $69.58.
ICE Brent crude for April delivery rose $2.19 to $72.94 bbl after an intraday peak of $73, the highest since July 31, when it reached $73.53.
Downstream, front-month RBOB futures climbed $0.0535 to $2.0858 gallon, while ULSD futures advanced by $0.0925 to $2.7050 gallon.
The U.S. Dollar Index slipped by 0.055 points to 97.685 against a basket of foreign currencies.