Oil prices rose on Monday, February 24, 2026, with Brent crude reaching its highest level since July 31, though prices subsequently declined during trading before recovering to Monday’s peaks on Tuesday. Brent crude fluctuated between $71.50 and $71.96 per barrel during the day, while West Texas Intermediate (WTI) traded between $66.60 and $66.80, according to oilprice.com. The increase reflects growing concerns about potential geopolitical instability in the Middle East.
Analysts attribute the price increase to the threat of escalating conflict. “The risk of potential military escalation in the Middle East is increasing, and traders are trying to hedge against worst-case scenarios,” said Priyanka Sachdev of Phillip Nova. She added that the price increases are driven more by expectations of future developments than by immediate concerns about supply disruptions.
James Hosie, an analyst at Shore Capital, noted that oil markets are reacting “rationally when factoring in potential supply disruptions in the event of a conflict.” This suggests investors are proactively pricing in risk as tensions rise in the region.
A third round of talks between the U.S. And Iran is scheduled to take place in Geneva on Thursday, February 27, 2026, indicating that U.S. Officials still believe a deal is possible, despite Iranian Supreme Leader Ayatollah Khamenei’s statement last week that Iran will not relinquish uranium enrichment or its ballistic missile program. The ongoing negotiations highlight the complex geopolitical factors influencing oil market dynamics.
According to experts cited by The New York Times, Iranian officials view conceding on uranium enrichment and ballistic missiles as a greater risk to their survival than engaging in war. “Avoiding war is undoubtedly a high priority, but not at any cost,” said Sasan Karimi of the University of Tehran.
The potential form of any military action remains unclear, with speculation centering on targeted strikes against ballistic missile bases, the elimination of Iranian leaders, or the destruction of paramilitary facilities. U.S. Leadership has not released any details and is not attempting to sway public opinion as George W. Bush did before the invasion of Iraq.
The U.S. Navy has already positioned assets in the region, with the USS Abraham Lincoln aircraft carrier stationed in the Arabian Sea off the coast of Oman for several weeks. The USS Gerald Ford aircraft carrier has also arrived from the Caribbean Sea near Crete. This deployment underscores the U.S.’s commitment to maintaining regional stability and protecting its interests.
Representatives from both countries are scheduled to meet in Geneva this week.
