Oil prices are currently hovering near their highest levels in seven months, with Brent crude futures rising 0.8% to $72.04 per barrel and West Texas Intermediate rising to $66.81 per barrel. This increase in prices comes as traders anticipate new negotiations on nuclear matters between the United States and Iran scheduled for later this week. The situation is further complicated by ongoing tariff tensions that are casting uncertainty over demand forecasts in the global oil market, as reported by Investing.com.

As the markets prepare for the upcoming nuclear talks between Washington and Tehran, scheduled for Thursday in Geneva, there has been a noticeable rise in tensions. The U.S. has taken precautionary measures by withdrawing some non-essential staff from its embassy in Beirut, a move that has heightened fears of a potential breakdown in diplomatic relations. This escalation in diplomatic tensions indicates that any failure in negotiations could have significant repercussions for global oil markets, affecting supply stability and pricing.

Meanwhile, the market's response reflects broader geopolitical strains, as traders consider not only the direct outcomes of the talks but also the surrounding context of high tariff tensions that may impact demand for oil. As analysts closely watch these developments, the interplay of diplomacy between the U.S. and Iran is expected to be a critical factor in shaping future oil price trends and market stability.