Geopolitics Weigh Heavy on Crude Oil Futures Amid Stalled Talks

Crude oil futures were consolidating their gains on Friday as geopolitical tensions continued to rise. The price increase comes amid stalled talks between the US and Iran, as well as fears of further military action in the region.

The Strait of Hormuz, a critical shipping route through which nearly one-fifth of global crude oil exports pass, has been a focal point of concern. On Thursday, the UKMTO reported that a tanker had been attacked while transiting the strait.

Meanwhile, EU member countries held emergency talks on Thursday as the US presses for a stock release to help soothe record-high diesel prices. The Middle East Gulf region has seen crude exports excluding Iran largely return to pre-war levels, but is now relying on a more diverse network of supply routes.