Oil Prices Hold Steady Following Four-Day Rally Amid Iran Diplomatic Talks

Global oil prices steadied on Tuesday after surging over the past four sessions, with Brent crude closing at $87.45 per barrel and WTI futures at $83.90. The pause followed gains of 4.3% and 4.1% respectively during the prior week, driven by renewed concerns over Middle East supply disruptions and the potential for tighter global output. The market's focus shifted toward a high-level diplomatic meeting involving Iran, expected to begin in Vienna later this week. While no official agenda has been released, analysts suggest discussions may address the resumption of nuclear negotiations and the potential for eased sanctions on Iranian oil exports. A return of even modest volumes from Iran could impact global supply, with estimates suggesting up to 1.2 million barrels per day could re-enter the market if sanctions are relaxed. Despite the stability, traders remain cautious. Inventory data from the U.S. Energy Information Administration showed crude stockpiles dropped by 2.1 million barrels last week, down from a forecasted 1.5 million decline. Meanwhile, demand forecasts from the International Energy Agency have been revised upward by 110,000 barrels per day for 2026, citing stronger-than-expected growth in China and India. Energy stocks reacted positively, with ExxonMobil (XOM) rising 1.4% and Chevron (CVX) up 1.1% in early trading. However, refiners and airlines continue to monitor price volatility, as fuel costs remain a significant cost factor in energy-intensive sectors.