Oil prices recover slightly after dropping to $70 amid U.S.-Iran peace talks, but renewed geopolitical risks lift Brent crude.
Brent crude futures rose 0.74% to $72.54 per barrel by mid-morning trading, reversing earlier losses as markets weighed a potential U.S.-Iran peace deal against fresh geopolitical tensions. Prices had slumped near $70, erasing war risk premiums built into valuations since the conflict escalated.
The recent decline mirrored pre-war levels, with traders pricing out supply disruption risks. However, renewed military posturing between Washington and Tehran reignited concerns over shipping lanes in the Strait of Hormuz, a critical chokepoint for global oil flows.
Markets remain volatile as investors balance diplomatic progress with lingering instability in the Middle East.