Feb. 18 at 2:57 PM
Oil prices climbed more than 2% after U.S. Vice President J.D. Vance said Iran failed to address key American “red lines” during nuclear talks in Geneva, raising the risk of military escalation. Vance emphasized that President Donald Trump reserves the option to use force if diplomacy cannot halt Iran’s nuclear program, reinforcing market concerns about a potential conflict.
Earlier, Iran’s Foreign Minister Abbas Araghchi had described the discussions as constructive and said both sides agreed on general guiding principles, which initially pressured oil prices lower. However, Vance’s comments shifted sentiment, as traders reassessed the likelihood of a breakdown in negotiations.
Tensions were further heightened by Iranian military exercises in the Strait of Hormuz, a critical chokepoint through which roughly one-third of global seaborne crude exports pass. Any disruption in the waterway could significantly impact global supply.
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