Markets are bracing for renewed uncertainty over crude supplies and the broader stability of the Middle East.
Brent crude and U.S. West Texas Intermediate futures moved higher after fresh complications emerged in negotiations between Washington and Tehran.
The talks had raised hopes of easing tensions and potentially increasing Iranian oil exports, but the latest setbacks have reduced expectations for a quick agreement.
Traders are also monitoring the risk of disruptions to shipping and production across the region, where even limited escalation could tighten global supplies.
Higher prices could add pressure to fuel costs and complicate efforts by central banks to bring inflation under control.
Analysts say the market’s next direction will depend on both diplomatic developments and evidence of how much Iranian crude is reaching buyers. Until greater clarity emerges, oil prices are likely to remain sensitive to headlines from the negotiations and any signs of military escalation.