West Texas Intermediate was close to $66 a barrelwhile Brent settled under $72.
Trump said in a social media post it will be a “very bad day” for Iran if a deal isn’t agreed, and pushed back on reports the Pentagon was worried an extended military campaign may prove difficult.
Concerns about the fallout from a US strike on Iran have helped to drive futures higher this year, despite expectations of a global glut. American military forces have massed in the Middle East, and the State Department on Monday ordered the evacuation of non-emergency personnel at its embassy in Beirut.Any disruption by Tehran to shipping through the Strait of Hormuz remains the primary focus for the oil market should the US go ahead with a military strike. Tankers carrying crude and liquefied natural gas transit through the narrow waterway daily to deliver cargoes to customers worldwide.
A recent closure of parts of Hormuz for Iranian military drills has contributed to higher rates for oil supertankers. Hiring a very large crude carrier for a year now costs more than $92,000 a day on average, according to Clarksons Research Services Ltd., the highest in data going back to 1988.
Nuclear talks between the US and Iran are set to resume on Thursday in Geneva. Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner are expected to meet again with Iranian Foreign Minister Abbas Araghchi.
With inputs from Bloomberg
Also Read: Asia stocks wobble as Wall Street selloff saps confidence
