Oil prices inched higher on Wednesday as traders weighed diplomatic progress in talks between the United States and Iran against broader supply and demand concerns in global energy markets.
Brent crude futures rose around 0.3 percent to trade near $67 per barrel, while U.S. West Texas Intermediate (WTI) crude also posted modest gains, hovering in the mid-$62 per barrel range during early trading hours.
Market sentiment was influenced by reports of tentative progress in discussions between Washington and Tehran over nuclear-related issues. While negotiations have not yet produced a final agreement, indications of movement toward a potential understanding have tempered immediate geopolitical risk premiums in crude markets.
However, traders remained cautious as uncertainty persists around the scope and durability of any possible deal. Analysts noted that a breakthrough could eventually lead to adjustments in sanctions and potentially impact Iranian oil supply flows, though no concrete changes have been announced.
In addition to diplomatic developments, investors are monitoring supply dynamics, including U.S. crude inventory data and broader global demand signals. Seasonal demand patterns and macroeconomic indicators continue to play a role in shaping short-term price direction.
Despite the modest rebound, both Brent and WTI remain near recent multi-week lows, reflecting ongoing concerns about demand growth and broader economic conditions.
Energy markets are expected to remain sensitive to further updates from US–Iran negotiations, inventory data releases, and geopolitical developments affecting major oil transit routes in the coming days.
