Oil hovers near six-month high with nuclear talks and US tariffs in focus

Oil prices steadied near a six-month high on Monday as the U.S. and Iran prepared for a third round of nuclear talks while increased economic uncertainty was also in focus after the latest U.S. tariff upheaval.

Brent crude futures were up 9 cents at $71.85 a barrel by 1308 GMT while U.S. West Texas Intermediate crude gained 15 cents to $66.63. 

Growing concern over potential military conflict between the U.S. and Iran pushed Brent prices up more than 5% last week to their highest since July 2025 at $72.34.

"With the next, and possibly last, round of the Iranian nuclear talks not until Thursday, focus is on the U.S. Supreme Court’s decision to strike down import tariffs and the subsequent reaction from the government," said PVM Oil Associates analyst Tamas Varga. 

The U.S. Customs and Border Protection agency said it would halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST (0501 GMT) on Tuesday.

However, Trump said on Saturday that he would raise a temporary tariff from 10% to 15% on U.S. imports from all countries, the maximum allowed under the law, after the U.S. Supreme Court struck down his previous tariff programme.

"This morning’s weakness is a defensive move, and needless to say, with the uncertainty surrounding a U.S. military intervention in Iran, the ongoing Russian-Ukrainian war and now the U.S. Supreme Court’s decision, oil price direction is not (clear), but volatility is guaranteed," PVM's Varga said. 

Iran has indicated it is prepared to make concessions on its nuclear programme in return for the lifting of sanctions and recognition of its right to enrich uranium, a senior Iranian official told Reuters ahead of Thursday's third round of nuclear talks between the two nations. 

While prices on paper had moved higher, softer prompt spreads and weaker physical differentials pointed to pricing being based on geopolitical concerns rather than an actual lack of oil in the market, Morgan Stanley analysts said in a note. 

(Reporting by Seher Dareen and Enes Tunagur in London, Mohi Narayan in New Delhi and Florence Tan in SingaporeEditing by Emelia Sithole-Matarise and David Goodman)