Oil Prices Near Seven-Month Highs Ahead of US-Iran Talks: What This Means for Investors and Businesses in Oman
WASHINGTON – Oil prices inched higher on Wednesday as investors balanced concerns over potential military conflict between the United States and Iran, which could disrupt supply, against a significant rise in U.S. crude inventories.
At 09:57 GMT, Brent crude futures increased by 6 cents to $70.93 per barrel, while West Texas Intermediate (WTI) futures rose 4 cents, reaching $65.91 per barrel.
Brent crude recently hit its highest level since July 31, and WTI reached its peak since August 4 earlier this week. These gains come amid the U.S. deployment of military forces to the Middle East in an effort to pressure Iran into negotiating an end to its nuclear and ballistic missile programs.
A prolonged conflict could severely impact oil supplies from Iran, the third-largest crude producer in OPEC, as well as other key producers in the Middle East region.
Adding to market tensions, U.S. President Donald Trump outlined his rationale for a potential strike on Iran during his State of the Union address on Tuesday, warning that he would not permit the world’s “largest sponsor of terrorism” to acquire nuclear weapons.
“This uncertainty means the market will continue to price in a large risk premium and remain sensitive to any fresh developments,” noted ING commodities strategists on Wednesday.
Meanwhile, U.S. envoys Steve Witkoff and Jared Kushner are scheduled to meet with an Iranian delegation in Geneva on Thursday for a third round of talks. Iran’s Foreign Minister Abbas Araghchi stated on Tuesday that a deal with the U.S. is “within reach, but only if diplomacy is given priority.”
Market analyst Tony Sycamore from IG commented, “Trump has warned that without an agreement, there will be ‘very bad consequences.’ Whether Iran’s concessions will satisfy the U.S. ‘zero enrichment’ demand remains uncertain.”
Amid escalating tensions, Iran has reportedly expedited its efforts to acquire Chinese anti-ship cruise missiles, which could be aimed at the U.S. naval forces currently gathered near the Iranian coast.
Despite geopolitical risks supporting oil prices, the market is also grappling with concerns about rising inventories as global supply continues to outpace demand.
With oil prices near a six-month high, the energy sector has shown strong performance in 2026, but whether it can sustain further gains remains to be seen.
Special Analysis by Omanet | Navigate Oman’s Market
Rising geopolitical tensions between the US and Iran are injecting significant risk premiums into oil prices, creating both volatility and opportunity for Oman’s hydrocarbon sector. For businesses and investors, this environment underscores the importance of strategic hedging and agile supply chain management to mitigate potential supply disruptions. Smart entrepreneurs should closely monitor diplomatic developments, as a resolution could stabilize prices, while prolonged conflict could elevate Oman’s role as a stable oil supplier, opening up new export and investment opportunities.
