Oil Prices Diverge as Markets Await Outcome of US–Iran Talks

Oil prices ended Wednesday’s session mixed, as concerns over potential supply disruptions stemming from U.S.–Iran tensions outweighed a sharply higher-than-expected build in U.S. crude inventories.

U.S. crude futures (WTI) settled down 21 cents, or 0.32%, at $65.42 per barrel, while Brent crude futures edged up eight cents to $70.85 per barrel.

Latest Oil Prices:

WTI Crude • 65.42 -0.21 -0.32%

Brent Crude • 70.97 +0.20 +0.28%

Murban Crude • 70.57 +0.02 +0.03%

Louisiana Light • 68.61 -0.38 -0.55%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 69.69 -0.02 -0.03%

Mars US • 69.53 -0.85 -1.21%

Gasoline • 1.991 +0.020 +1.01%

Natural Gas • 2.969 +0.054 +1.85%

The U.S. Energy Information Administration reported that U.S. crude inventories surged by 16 million barrels last week, driven by lower refinery utilization and higher imports.

The increase far exceeded analysts’ expectations in a Reuters poll, which had projected a rise of just 1.5 million barrels.

Ordinarily, such a large inventory build would weigh heavily on prices. However, traders remained focused on geopolitical developments in the Middle East, where rising tensions have amplified concerns over supply stability.

Brent crude had already reached its highest level since July 31 last Friday, while West Texas Intermediate touched its strongest level since early August earlier this week.

Prices have hovered near those peaks as the United States strengthens its military presence in the Middle East amid efforts to pressure Iran into negotiations over its nuclear and ballistic missile programs.

Any escalation could disrupt supplies from Iran, the third-largest crude producer in OPEC, as well as from other key oil-producing nations in the region.

A third round of talks between U.S. envoys Steve Witkoff and Jared Kushner and an Iranian delegation is scheduled to take place Thursday in Geneva.

Iranian Foreign Minister Abbas Araghchi said Tuesday that an agreement with the United States is “within reach,” provided diplomacy remains the priority.

Meanwhile, U.S. President Donald Trump, during his State of the Union address, reiterated that Iran’s missile capabilities pose a threat to Europe and U.S. forces abroad.

Despite geopolitical risks lending support to prices, the broader oil market continues to grapple with fears of oversupply. Global production has in some periods outpaced demand growth, contributing to elevated stockpiles.