Oil prices shot higher on Friday morning after US-Iran talks ended in Geneva on Thursday with no deal and the US began ordering evacuations from embassies in the Middle East.
Futures on Brent crude (BZ=F), the international pricing benchmark, jumped by 2.9% to change hands above $72.90, while those on the US benchmark West Texas Intermediate (WTI) crude (CL=F) rose by a stronger 3% to trade above $67.
Both energy products are trading at six-month highs.
On Thursday, the US and Iran remained far apart on key redline issues, even as Oman’s foreign minister, Badr Albusaidi, who is mediating the talks, said progress has been made. The two sides are now set for the next round of talks in Vienna, with technical teams — such as nuclear and banking experts — expected to join.
More pressingly for oil prices, the US has continued to send military firepower to the region, deploying more combat assets to the Gulf, and has begun taking security measures for Americans in the region.
On Friday, the US embassy in Jerusalem said it had authorized the evacuation of non-essential personnel and family members, noting that those persons included “may wish to consider leaving Israel while commercial flights are available.”
Reports from regional news publications also suggested that the US had ordered the evacuation of personnel from the US embassies in Baghdad, though a spokesperson for the State Department denied the claim in an X post.
Oil prices are highly sensitive to potential conflict in Iran, with the most focus on the Strait of Hormuz, a critical shipping chokepoint through which roughly 20 million barrels per day of petroleum products pass. Iran, which largely controls the strait, has threatened to close the waterway, along with threats of severe retaliation if the US strikes.