Oil prices swung sharply as Iran and the US played diplomatic phone tag, with reports of cancelled talks driving gains before confirmation of Friday talks in Oman sent crude back down.

Posting this a catch up!

Summary:

Oil prices whipsawed on conflicting signals around Iran–US talks
Crude jumped on reports Friday talks were off, then reversed sharply
Iran later confirmed talks with the US are still planned for Friday in Oman
Disagreement over agenda keeps geopolitical risk premium unstable
Markets remain sensitive to Middle East escalation risk and supply threats

Oil prices were sent on a volatile round trip on Wednesday as traders reacted to mixed headlines around planned talks between Iran and the United States, highlighting how fragile sentiment remains amid heightened geopolitical tension.

Crude initially surged after reports suggested that Iran–US talks scheduled for Friday had been called off, stoking fears of renewed escalation and reinforcing a geopolitical risk premium already elevated by recent military deployments and rhetoric. The move was short-lived. Prices quickly retraced much of the gain after Iran’s foreign minister said the talks were still on, easing immediate concerns of a diplomatic breakdown.

Officials from both sides later confirmed that talks would take place in Oman, after a last-minute change of venue from Turkey at Iran’s request. However, the confirmation did little to stabilise markets, as sharp differences over the agenda remain unresolved. Tehran has insisted negotiations be limited strictly to its nuclear programme, while Washington wants broader discussions that include Iran’s ballistic missile arsenal, regional proxy activity and domestic repression.

US officials reiterated that any meaningful engagement would need to go beyond nuclear issues, while Iranian officials said missiles were firmly off the table, warning that expanding the scope could jeopardise the talks altogether. The lack of clarity reinforced the sense that diplomacy remains fragile and prone to sudden reversals.

The backdrop remains tense. The US has significantly bolstered its military presence in the region following Iran’s recent crackdown on protests and renewed threats of military action. Incidents involving drones and shipping near the Strait of Hormuz have added to supply-side anxiety, keeping oil traders highly reactive to every headline.

For markets, Wednesday’s price action underscored how quickly crude can swing as diplomacy between Washington and Tehran continues a stop-start pattern, with each signal capable of repricing geopolitical risk in real time.