Oil prices erase gains after Iran says U.S. talks could be pursued based on national interests

Oil prices initially rose but then erased gains after Iran indicated it could pursue talks with the United States based on national interests. The statement came amid ongoing U.S. military strikes against Iranian targets, now in their ninth consecutive night. The conflicting signals between diplomatic overtures and continued hostilities created volatility in energy markets. Traders are assessing the potential for de-escalation versus further conflict in the Middle East, a key oil-producing region. No specific timeline or conditions for talks were provided by Iranian officials. The situation remains fluid, with both military and diplomatic channels active simultaneously.

Global Impact

The primary impact is on global energy markets, where the risk of supply disruption from the Strait of Hormuz remains a tail risk. Politically, any U.S.-Iran talks could reshape Middle Eastern alliances and reduce tensions, but the ongoing strikes suggest a fragile path.