---
title: 'Oil Climbs as Uncertainty Over US-Iran Talks Persists'
url: 'https://thediplomaticinsight.com/oil-climbs-as-uncertainty-over-us-iran-talks-persists/'
author: 'News Desk'
date: '2026-05-12T18:58:30+05:00'
categories:
  - 'Economy'
tags:
  - 'Donald Trump'
  - 'Oil prices'
  - 'Supply'
  - 'US–Iran Talks'
---

# Oil Climbs as Uncertainty Over US-Iran Talks Persists

**New York (TDI):** Oil prices climbed on Tuesday as uncertainty surrounding efforts to end the US-Israel conflict with Iran continued to fuel concerns over global energy supplies.

Brent crude rose by 86 cents, or around 0.8 percent, reaching $105.07 per barrel, while US West Texas Intermediate crude gained 99 cents to trade at $99.06 per barrel. Both benchmarks had already posted gains of nearly 3 percent in the previous session.

Investor concerns remained elevated after US President Donald Trump said the ceasefire with Iran was “on life support,” citing unresolved disagreements between the two sides. Key sticking points reportedly include ending military operations across all fronts, lifting the US naval blockade, resuming Iranian oil exports, and compensation linked to war-related damage.

Iran also reaffirmed its control over the Strait of Hormuz, a strategically important shipping route that handles nearly one-fifth of global oil and LNG supplies.

Analysts said fading hopes for a quick peace agreement are keeping upward pressure on oil markets. Energy experts warned that if negotiations fail to progress in the coming weeks, prices could rise further due to fears of prolonged supply disruptions.

**Read More: [Kuwait to Explore Strategic Oil Storage Investment in Pakistan](https://thediplomaticinsight.com/kuwait-explore-strategic-oil-storage-investment-pakistan/)**

Concerns have intensified after disruptions around the Strait of Hormuz forced some producers to scale back exports. A recent Reuters survey showed OPEC’s oil output in April dropped to its lowest level in more than 20 years.

Market analysts noted that a successful diplomatic breakthrough could sharply reduce prices, while any renewed escalation in the region could send Brent crude back above $115 per barrel.

Saudi Aramco CEO Amin Nasser also warned that instability affecting exports through the Strait of Hormuz could delay a full recovery in global oil market stability until 2027. He said disruptions could remove nearly 100 million barrels of oil per week from the market.

**Read More: [Oil Rises as US–Iran Clashes Renew Supply Fears](https://thediplomaticinsight.com/oil-rises-as-us-iran-clashes-renew-supply-fears/)**

On the supply side, analysts expect US crude inventories to have fallen by around 1.7 million barrels last week, partly due to strong export demand.

Investors are also closely monitoring the expected meeting between President Trump and Chinese President Xi Jinping, especially after Washington imposed sanctions on individuals and companies accused of helping facilitate Iranian oil shipments to China.