Oil jumps after Vance says Iran ignored red line, strikes on the table
Oil prices rose 3 percent on Wednesday after Vice President J.D. Vance said Iran did not address U.S. red lines in nuclear talks this week and President Donald Trump reserved the right to use military force.
US crude oil oil rose $1.99, or 3.19%, to $64.32 a barrel as of 10:09 a.m. ET. Global benchmark Brent It rose $2.04, or 3.03%, to $69.46 per barrel.
US ambassadors Steve Witkoff and Jared Kushner held nuclear talks with Iran in Geneva on Tuesday. Iranian Foreign Minister Abbas Araghchi described the talks as “constructive”. Iranian media. Araghchi said the talks led to general agreement on guiding principles.
Oil prices closed lower on Tuesday as traders interpreted the secretary of state’s comments as a sign that the United States and Iran could still reach a deal.
But Vance said Tehran has failed to meet basic U.S. demands.
“In some ways things went well, they decided to meet later,” the vice president said. Fox News Tuesday evening. “But in other respects it’s clear that the President has set some red lines that the Iranians are not yet willing to accept and work with.”
Vance said Trump reserves the right to use force if diplomacy is not successful in stopping Iran’s nuclear program. “We have a very strong military; the president has shown a willingness to use it,” the vice president told Fox News.
Sources told AxiosMeanwhile, it is stated that the US military operation against Iran will likely be very large in recent weeks and will resemble a full-fledged war rather than the raid that captured Venezuelan President Nicolás Maduro in January.
Iran’s Revolutionary Guard this week staged war games in the Strait of Hormuz, a vital trading point for global oil flows. About a third of waterborne crude oil exports pass through the narrow waterway, according to data from energy consultancy firm Kpler.
The oil market is worried that the oil flow will be interrupted if the USA and Iran go to war. Iranian state media reported that traffic was closed in part of the strait on Tuesday due to military exercises.
Matt Smith, the firm’s oil analyst, said Kpler did not observe any stoppages in traffic in the strait on Tuesday.
Trump deployed the USS Abraham Lincoln aircraft carrier to the Middle East. USS Gerald Ford departed for the area.
Trump said Friday he was decommissioning the second aircraft carrier if negotiations fail. “If we don’t have a deal, we’re going to need one,” the president said he told reporters Outside the White House.
