Oil markets are highly attuned to geopolitical tensions, and recent developments regarding Iran have prompted immediate reactions. On Wednesday, crude oil prices surged by about 4% following statements from US Vice President Jay D. Vance, who accused Tehran of ignoring key American demands during recent nuclear negotiations and emphasized that military intervention remained a possible option. Additionally, a report from Axios hinted that former President Trump is close to escalating tensions into a major conflict with Iran, further driving prices upwards.

In this context, the prices of American light crude (WTI) increased by 4.25% to $64.98 per barrel, while Brent crude rose by 3.93% to $70.07. This rise stands in stark contrast to the previous trading session, where the markets had seen a downturn as negotiations in Geneva were seen as leaving room for potential agreements. The contrasting market behaviors reflect the sensitive nature of oil prices to political developments, especially those involving Iran, a major player in the global oil supply.

The statements from US officials signal a hardening stance towards Iran, indicating that 'red lines' have been drawn, which could lead to further escalations if negotiations do not yield satisfactory results for the United States. Given Iran's crucial role in oil production and exports, any military action or escalation in the region could have significant implications for global oil prices and supply chains, which are already facing pressures from various factors.