Oil prices rise as Trump ramps up Iran threats

An Oil tanker in parking. [File, Standard]

Oil prices rose Tuesday after US President Donald Trump ramped up threats towards large crude producer Iran, as the two countries met in Geneva for talks over the Islamic republic's nuclear programme.

West Texas Intermediate jumped 1.5 percent per barrel, while international benchmark Brent North Sea crude edged higher.

"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 not clear if that will be enough to seal a deal between the two parties," noted Aarin Chiekrie, analyst at Hargreaves Lansdown.

Iran and the United States began fresh talks as Trump warned of consequences should Tehran fail to strike a deal.

The US president has repeatedly threatened to intervene militarily against Iran, first over the Islamic republic's deadly crackdown on protesters last month and then more recently over its nuclear programme.

Iran on Tuesday said that the lifting of US sanctions was an integral part of any nuclear deal with the United States.

Elsewhere on markets, European stocks steadied in early afternoon deals after Tokyo closed lower, with Chinese markets shut for the Lunar New Year.

Wall Street reopens Tuesday after a US public holiday.

"US stock futures are trading lower as AI-related fears continue to weigh on sentiment," Chiekrie said.

"Insurance brokers, wealth advisors, real estate services, and logistics were all in the firing line last week, and investors are cautiously watching for what slice of the market could be next on the AI hit list," he added.

In foreign exchange, the dollar rose against the British pound as official data showed UK unemployment rising to a five-year high.

Analysts said the reading of 5.2 percent for the final quarter of last year increased the likelihood of the Bank of England cutting its benchmark interest rate next month.

The greenback was also higher versus the euro but fell against the yen.

Europe's biggest economy Germany is unlikely to rebound in 2026 as geopolitical uncertainty, high costs and weak domestic demand weigh on growth, the country's Chamber of Industry and Commerce said Tuesday.

Germany returned to weak growth in 2025 after two years of recession.

Key figures at around 1115 GMT

West Texas Intermediate: UP 1.5 percent at $63.80 per barrel

Brent North Sea Crude: UP 0.1 percent at $68.71 per barrel

London - FTSE 100: UP 0.1 percent at 10,485.95 points

Paris - CAC 40: DOWN 0.1 percent at 8,307.03

Frankfurt - DAX: UP 0.1 percent at 24,817.54

Tokyo - Nikkei 225: DOWN 0.4 percent at 56,566.49 (close)

Hong Kong - Hang Seng Index: closed for holiday

Shanghai - Composite: closed for holiday

New York - Dow: closed for holiday

Euro/dollar: DOWN at $1.1844 from $1.1854 on Monday

Pound/dollar: DOWN at $1.3594 from $1.3630

Dollar/yen: DOWN at 153.01 yen from 153.48 yen

Euro/pound: UP at 87.12 pence from 86.98 pence