Oil steady as traders weigh supply risks heading into key US-Iran talks

Oil prices were steady on Tuesday as investors assessed risks of supply disruption after Iran conducted naval drills near the Strait of Hormuz right ahead of nuclear talks with the U.S. later in the day. US President Donald Trump said on Monday that he would be involved “indirectly” in the talks in Geneva, adding he believs Tehran wants to make a deal. At the weekend, Trump said that regime change in Iran “would be the best thing that could happen.” Brent crude futures were 0.2% lower at $68.59 a barrel by 0106 GMT, following a 1.3% gain on Monday. US West Texas Intermediate crude was at $63.73 a barrel, up 84 cents, or 1.34%, but the move included all of Monday’s price action as the contract did not have settlement that day due to the US Presidents Day holiday. Many markets are closed on Tuesday for Lunar New Year holidays, including mainland China, Hong Kong, Taiwan, South Korea and Singapore.