On Tuesday, oil prices rose as concerns about Iran-U.S. tensions intensified. Brent crude futures for November delivery increased by 1.53% to $101.88 per barrel, while U.S. West Texas Intermediate futures for October rose 1.5% to $97.22 per barrel.
Bessent stated that the shutdown of Iranian airlines would effectively prevent them from receiving fuel and landing services, which could significantly impact their operations. Investors are also monitoring potential diplomatic developments, as Iranian President Masoud Pezeshkian is scheduled to address the United Nations and engage in talks with various leaders.
Market analysts, including Lukman Otunuga from FXTM, suggest that any confirmation of direct negotiations between the U.S. and Iran could lead to lower oil prices by improving supply expectations. However, Tehran has warned that any escalation could result in a strong response, potentially driving prices higher.
The situation remains fluid, and the outcome of diplomatic discussions could significantly influence oil market dynamics