Oil Jumps as Iran Nuclear Talks Stall, Reviving Fears of Middle East Supply Disruptions

Oil prices climbed sharply on Friday after negotiations between the United States and Iran over Tehran’s nuclear program ended without a breakthrough, reigniting concerns that tensions could escalate into military action and disrupt crude supplies from the Middle East.

By 07:50 ET (12:50 GMT), Brent crude futures for April delivery were up 2.4% at $72.54 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 2.6% to $66.89 a barrel. Both benchmarks were on track to post solid gains for February, supported by a renewed geopolitical risk premium.

Iran-U.S. talks stall, tensions remain elevated

Talks between Washington and Tehran concluded on Thursday without a deal, although both sides indicated that negotiations would resume soon. Oman, which has been mediating the discussions, said technical-level talks are scheduled to take place in Vienna next week.

Despite the prospect of further dialogue, markets remained focused on the lack of immediate progress. Tensions surrounding Iran have been a key driver of oil prices throughout February, particularly as the United States has built up a significant military presence in the region and warned of potential action if Tehran refuses to compromise.

Any escalation carries major implications for global energy markets. Iran controls the northern coast of the Strait of Hormuz, a critical chokepoint through which a significant share of the world’s oil shipments passes. Disruption to traffic through the strait could have swift and far-reaching consequences for global supply.

Venezuela supply to rise under U.S. deal

Adding a counterweight to geopolitical risks, U.S. officials said oil sales under a recent agreement between Washington and Venezuela are expected to reach $2 billion by the end of February.

The development follows the U.S. takeover of Venezuela’s oil industry earlier this year after President Nicolas Maduro was captured by U.S. forces. Since then, Venezuelan output has increased, with major trading houses such as Vitol and Trafigura marketing much of the crude.

Several buyers across Asia and Europe, including India, are expected to receive Venezuelan oil shipments in the coming weeks. Venezuela’s return to the market represents a meaningful boost to global supply, which could weigh on prices over the medium term.

Concerns over a potential supply glut in 2026 have already pressured crude in recent months, but for now, escalating geopolitical risks are dominating sentiment and pushing oil prices higher.