Global oil prices climbed approximately 2% on Tuesday, reaching their highest level in two weeks, driven by escalating geopolitical tensions that appear likely to prolong sanctions on major oil producers Russia and Iran.
Brent crude futures rose by $1, or 1.5%, closing at $65.63 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude increased by 89 cents, or 1.4%, to settle at $63.41 per barrel.
Analysts attribute the rise to diminishing prospects for a near-term resolution to two major geopolitical standoffs: the conflict between Russia and Ukraine, and ongoing negotiations over Iran’s nuclear program.
“Risk premium has ramped up this week as the prospect of a Russia/Ukraine ceasefire as well as an Iranian nuclear deal now appear to have been pushed back for weeks if not months,” noted energy advisory firm Ritterbusch and Associates in a statement.
The continued uncertainty surrounding these international conflicts is expected to keep sanctions in place on both Russia and Iran—key members of the OPEC+ alliance—limiting global oil supply and supporting higher prices.
