Oil Prices Calm as Traders Digest Mixed US‑Iran War Talk Signals

Oil steadied on Tuesday as traders weighed mixed signals on US‑Iran war talks. West Texas Intermediate hovered around $98 a barrel while Brent closed just under $109, moving within a $6 range during the session. An earlier unconfirmed report that peace talks were close had pushed Brent down from five‑month highs, at one point dropping 3.3% before losses were trimmed. President Donald Trump said he still has to make a final decision on how he wants to win the conflict, adding to uncertainty. A diplomat involved in the negotiations said reports of a near‑term agreement are inaccurate. Brent has risen almost 80% so far this year as Middle‑East tensions and the Russia‑Ukraine war tighten energy supplies, while refined product prices have risen even faster. Renewed attacks on tankers and energy infrastructure keep geopolitical risk high even as Persian Gulf oil flows have recovered to near pre‑war levels. “This conflict doesn’t feel like it’s coming to a quick conclusion,” said Dan Pickering, chief investment officer at Pickering Energy Partners, noting traders are bracing for a higher‑price environment with near‑term volatility. The American Petroleum Institute said US crude stocks fell by 4.9 million barrels last week, which would be a third consecutive weekly decline if official data confirm it. ## Context Oil prices react sharply to news about wars and diplomatic talks because supply expectations shift quickly; inventory reports add another layer, as lower stocks tend to support higher prices.