Oil markets are showing signs of hesitation as traders weigh a complex mix of factors. Brent briefly climbed above $70 per barrel before retreating to around $67.6, while WTI slipped from a peak of $65.8 to $62.9, reflecting the absence of a clear directional trend over the past week.
The recent volatility is driven by softer demand forecasts and easing tensions between the United States and Iran. The latest report from the International Energy Agency highlighted a growing market imbalance, pointing to an oversupply at a time when global demand growth is expected to slow. Meanwhile, geopolitical risks have temporarily subsided: U.S. President Donald Trump confirmed his intention to continue nuclear negotiations with Iran without expanding talks to ballistic programs, calming fears of an immediate escalation.
However, the underlying tension in the Middle East persists, underscored by the U.S. deployment of a second aircraft carrier to the region. Analysts suggest that while short-term conflict risks have eased, oil markets remain highly sensitive to shifts in geopolitical dynamics and supply-demand fundamentals, keeping prices within a wide, volatile range.