Oil prices climb above $80 as US-Iran talks collapse
Istanbul - Brent crude oil prices climbed back above $80 per barrel on Friday as investors weighed heightened geopolitical risks following the cancellation of planned talks between the United States and Iran and fresh Israeli attacks in Lebanon. Brent crude was trading around $80.11 per barrel at 07.00 GMT, while shipping conditions in the Strait of Hormuz showed signs of improvement.
Oil prices were boosted after Switzerland stated that the planned negotiations between the US and Iran would not proceed as scheduled. The Swiss Foreign Ministry said the discussions planned in Burgenstock were cancelled after the White House announced that US Vice President JD Vance would not travel to Switzerland because logistical details for the expected technical talks with Iran remained unresolved.
The cancellation sparked concerns about the continuation of the diplomatic process following a temporary US-Iran peace agreement that ended a prolonged conflict and caused the largest supply disruption in history. Separately, Lebanon’s National News Agency reported that Israeli bombing and artillery strikes on the city of Nabatieh and surrounding areas killed at least 24 people and wounded several others early Friday.
Despite the renewed geopolitical risks, investors focused on signs of normalising energy flows through the Strait of Hormuz. The US Central Command announced it had lifted traffic restrictions to and from Iranian ports and coastal waters. Meanwhile, the Joint Maritime Information Centre advised vessels transiting the strait to take routes closer to the Omani coastline to reduce the risk of sea mines.
Tankers carrying crude oil that had previously been held up began exiting the waterway on Thursday, while Kuwait stated it would start increasing its oil production. The improving shipping outlook limited oil price gains, with prices erasing almost all the increases recorded since the Middle East conflict began in late February and remaining on track for a sharp weekly decline.