Oil prices edged higher on Thursday as markets focused on the third round of nuclear talks between the US and Iran, amid rising concerns over a potential military confrontation in the region.
International benchmark Brent crude traded at $70.83 per barrel at 10.07 a.m. local time (0707 GMT), up 0.12% from the previous close of $70.74.
US benchmark West Texas Intermediate (WTI) increased 0.12% to $65.51 per barrel, compared with $65.43 in the previous session.
The latest round of indirect talks between Washington and Tehran, mediated by Oman, is scheduled to take place later in the day in Geneva. The negotiations come amid heightened regional tensions, including a US military buildup in the Persian Gulf and increased alert levels in Israel.
US Secretary of State Marco Rubio warned on Wednesday that Iran's refusal to discuss its ballistic missile program poses "a big problem," while Vice President JD Vance reiterated that Tehran would not be allowed to obtain a nuclear weapon, stressing that diplomacy remains Washington's preferred path.
Iran's Foreign Minister Abbas Araghchi said Iran's missile capabilities are "defensive in nature" and intended purely for deterrence, rejecting claims that Tehran is developing missiles capable of reaching the US mainland.
Iran and the US have held two rounds of indirect talks under Omani mediation since nuclear diplomacy resumed last month, following regional efforts, including by Türkiye, to ease tensions. Both sides offered positive assessments after the previous round, agreeing on "guiding principles" that could pave the way for a potential agreement.
The negotiations come amid a significant US military buildup in the Persian Gulf and recent drills conducted by Iran's Islamic Revolutionary Guard Corps. Meanwhile, the US Treasury announced new sanctions targeting Iran’s so-called "shadow fleet" and weapons procurement networks.
Oil prices also faced pressure from demand concerns after US crude inventories rose far more than expected. Data from the Energy Information Administration showed commercial crude stocks increased by around 16 million barrels in the week ending Feb. 20, well above market expectations, although a draw in gasoline inventories signaled resilient consumption in some segments.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr