Oil Prices Hover Near Seven-Month Highs on U.S.–Iran Tensions

Crude oil prices remained close to their highest levels in about seven months on Wednesday as traders priced in escalating geopolitical risks ahead of scheduled talks between the United States and Iran that could impact supply.

Brent crude oil, against which Nigerian crude oil is priced, traded around $71.20 per barrel, the highest since late July 2025, while U.S. West Texas Intermediate (WTI) hovered near $66.01 per barrel.

The market’s elevated pricing comes amid concerns that rising tensions over Iran’s nuclear and missile programs could disrupt crude output from the Middle East, a region critical to global supplies.

The United States has deployed military resources to pressure Tehran, and a new round of talks was scheduled for later this week in Geneva.

Analysts say that even the risk of conflict, rather than actual supply loss, is enough to push oil prices higher as traders hedge against potential disruptions. This has supported a sustained risk premium in crude markets.

Despite the gains, inventories in the United States remain a factor to watch.

Data from the American Petroleum Institute showed a significant build in crude stocks, which may temper upside if confirmed by official Energy Information Administration figures.

The tight pricing backdrop underscores how geopolitical developments, particularly involving Iran’s role in oil flows and the strategic Strait of Hormuz, continue to exert outsized influence on oil market sentiment.