Oil prices rise as Iran rejects direct U.S. talks despite proposal review

Oil prices rose after Iran signaled it had no intention of holding direct talks with the U.S., while President Trump said the two countries are 'in negotiations' and suggested Tehran may be eager to strike a deal. The mixed diplomatic signals boost the short-term geopolitical risk premium on crude, supporting higher energy prices and posing upside risk to oil-related assets and inflation expectations.

Analysis

Oil prices rose after Iran signaled it had no intention of holding direct talks with the U.S., while President Trump said the two countries are 'in negotiations' and suggested Tehran may be eager to strike a deal. The mixed diplomatic signals boost the short-term geopolitical risk premium on crude, supporting higher energy prices and posing upside risk to oil-related assets and inflation expectations.