Oil rises past $72 as US-Iran talks fuel supply relief bets

Oil prices climbed on Friday, with Brent crude settling above $72 a barrel. The gain came as traders grew more hopeful that US-Iran peace efforts could eventually unlock Iranian supply that has been locked out of global markets by sanctions.

Iran's crude exports have averaged roughly 1.5 million barrels a day over the past year, mostly to China via grey-market channels. A formal deal could bring that volume into the open and potentially add more as the country restarts idled fields. The market had been pricing a risk premium tied to Middle East tensions; Friday's move partly unwound that premium.

Still, the rally was cautious. No direct talks have been scheduled, and previous rounds of optimism have faded without a breakthrough. Traders said the move was more about positioning than a fundamental shift in supply expectations. Brent had slipped below $70 earlier in the week on demand concerns, and the bounce back above $72 was driven by short-covering as much as new buying.

The next concrete marker is the resumption of formal negotiations. Until then, the supply-overhang narrative that pushed crude lower remains intact. For a broader view of the factors driving crude prices, the crude oil profile tracks the key supply, demand, and geopolitical variables.