Oil prices climbed on Tuesday as US President Donald Trump intensified threats against Iran, coinciding with fresh negotiations over Tehran’s nuclear programme in Geneva.
West Texas Intermediate (WTI) crude rose 1.5% to $63.80 per barrel, while Brent North Sea crude edged up to $68.71 per barrel.
“There’s speculation that Iran could agree to dilute its most highly enriched uranium in exchange for the full lifting of financial sanctions, but it’s unclear if that will seal a deal,” said Aarin Chiekrie, analyst at Hargreaves Lansdown.
Trump warned of consequences should Iran fail to strike an agreement, adding to market uncertainty. The US president has repeatedly threatened military intervention, first over Tehran’s crackdown on domestic protests and more recently concerning its nuclear ambitions. Iran, meanwhile, stressed that the lifting of US sanctions is a prerequisite for any nuclear deal.
Elsewhere, European stocks were largely stable in early afternoon trading, with Tokyo closing lower and Chinese markets shut for Lunar New Year. Wall Street remained closed for a US holiday.
“US stock futures are trading lower as AI-related fears continue to weigh on sentiment,” Chiekrie said, highlighting recent market volatility in insurance, wealth management, real estate, and logistics sectors.
In foreign exchange, the dollar strengthened against the British pound after UK unemployment data hit a five-year high of 5.2%, raising expectations of a possible Bank of England interest rate cut next month. The greenback also rose versus the euro but fell against the Japanese yen.
Germany’s economic outlook remains weak, with the country unlikely to rebound in 2026 amid geopolitical tensions, high costs, and weak domestic demand, according to its Chamber of Industry and Commerce. Germany recorded weak growth in 2025 following two years of recession.
Key Market Figures (approx. 1115 GMT)
- WTI Crude: $63.80/b, +1.5%
- Brent Crude: $68.71/b, +0.1%
- FTSE 100: 10,485.95, +0.1%
- CAC 40: 8,307.03, -0.1%
- DAX: 24,817.54, +0.1%
- Nikkei 225: 56,566.49, -0.4%
- Euro/USD: 1.1844, -0.0009
- GBP/USD: 1.3594, -0.0036
- USD/JPY: 153.01, -0.47
- EUR/GBP: 0.8712, +0.0014
