Oil prices pulled back from near seven-month highs on Tuesday, as traders closely watched U.S.-Iran nuclear negotiations amid escalating Middle East tensions. Global trade policy uncertainties also contributed to market caution.
Brent crude futures saw a slight decrease, settling below $71.40 a barrel after reaching a high of $72.50 the previous day. U.S. crude futures also experienced a minor dip, trading below $66.20 a barrel after touching a recent peak.
Analysts note that crude oil markets are on edge with the resumption of U.S.-Iran talks this week. Renewed trade tensions are also impacting market sentiment.
Iran and the U.S. are scheduled for a third round of nuclear talks in Geneva on Thursday. The U.S. seeks Iran's cessation of its nuclear program, a demand Iran has consistently rejected.
Amid growing concerns over potential military conflict with Iran, the U.S. State Department is evacuating non-essential personnel and their families from the U.S. embassy in Beirut.
On the trade front, President Trump warned countries against reneging on existing trade deals, threatening higher duties under different legal frameworks.
Additionally, Ukrainian drones reportedly struck a Russian pumping station linked to the Druzhba oil pipeline, which supplies crude to Eastern Europe.