Oil rises as markets assess supply risks after Iran denies US talks

Oil prices rose in early trade on supply fears after Iran denied holding talks with the United States to end the Gulf conflict, contradicting President Trump’s comment that a deal could be reached soon. The geopolitical uncertainty is likely to increase short-term oil price volatility and can benefit oil producers while posing downside risks for risk assets sensitive to a wider Middle East escalation.

Analysis

Oil prices rose in early trade on supply fears after Iran denied holding talks with the United States to end the Gulf conflict, contradicting President Trump’s comment that a deal could be reached soon. The geopolitical uncertainty is likely to increase short-term oil price volatility and can benefit oil producers while posing downside risks for risk assets sensitive to a wider Middle East escalation.