Oil prices have recently crossed the critical psychological level of $70 per barrel for Brent crude, indicating that the market is not merely in a state of nerves, but is entering a period of significant geopolitical risk pricing. As of Thursday morning, Brent crude rose to $70.58 per barrel, while American WTI climbed to $65.44, following an increase of over 4% in the previous session. This price surge is closely linked to the fragile negotiations between Washington and Tehran regarding Iran's nuclear program, coupled with escalating military preparations from both sides.

The United States asserts its commitment to a diplomatic solution with Iran, yet it has made it clear that military options remain on the table. Vice President Jay D. Vance indicated that the US is weighing whether to continue diplomatic engagement or pursue alternative options. This cautious stance underscores the precarious balance in US-Iran relations, where the potential for conflict continues to loom as both parties navigate through a landscape marked by threats and uncertainty.

In parallel, Tehran has issued a NOTAM (Notice to Airmen) regarding missile launches in the southern part of the country, further illustrating the increasing military readiness in the region. Such developments not only intensify the risk of direct conflict but also contribute to volatile oil market conditions, affecting energy prices on a global scale. The implications for international markets could be significant as the geopolitical dynamics evolve, signifying that stakeholders may need to brace for further fluctuations in oil pricing driven by developments in the US-Iran relationship.