Oil climbs as US-Iran tensions keep supply risks in focus

Oil prices climbed on Thursday, hovering near seven-month highs, as investors gauged whether U.S.-Iran talks could avert a military conflict that risks supply disruptions, though gains were capped by a build in U.S. crude inventories. Brent futures were trading at $71.12 per barrel, up 27 cents, or 0.3%, at 0123 GMT. WTI futures rose 23 cents, or 0.4%, to $65.65. Brent gained 8 cents on Wednesday, while WTI fell 21 cents. On Monday, Brent rose to its highest since July 31 and WTI to its highest since July 31. Both contracts have held near those levels as Washington has positioned military forces in the Middle East to press Iran to negotiate an end to its nuclear and ballistic missile programme. US envoy Steve Witkoff and Jared Kushner are due to meet an Iranian delegation for a third round of talks on Thursday in Geneva. “Investors are focusing on whether military conflict will be averted in the U.S.-Iran negotiations,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.