Analyst: The market is closely watching the US-Iran talks, and the risk of oil prices fluctuating at high levels still exists

On Wednesday, both WTI and Brent crude oil fell more than 2%, as U.S. President Trump once again claimed that the war with Iran would soon come to an end. However, due to ongoing supply disruptions in the Middle East, investors remain cautious about the outcome of negotiations. Emril Jamil, a senior oil research analyst at the London Stock Exchange Group, stated that as the market assesses the geopolitical situation, benchmark oil prices have softened due to the possibility of an agreement.

However, even if an agreement is reached, there may still be some upward potential for oil prices, as supply is unlikely to return to pre-war levels immediately. Toshitaka Tazawa, an analyst at Fujitomi Securities, noted that as the U.S. position changes daily, investors are closely watching whether the U.S. and Iran can truly find common ground and reach a peace agreement. Given the possibility that the U.S. may strike Iran again, and that even with a peace agreement, crude oil supply will not quickly return to pre-war levels, oil prices may remain elevated.

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