RoydadNaft –  Oil prices rose on Wednesday as markets continue to grapple with geopolitical balances, leading to ongoing volatility between supply and demand outlooks. Policy uncertainties in the United States have exerted pressure on geo-economic aspects and influenced global economic forecasts.

According to Roydad Naft, Brent crude was trading at $67.60 per barrel, showing a 0.27% gain compared to the previous close (around $67.42). The US WTI benchmark also rose by about 0.40% to $62.50 per barrel, an improvement from the prior session (around $62.25).

Markets are focused above all on comments from US Vice President J.D. Vance. He stated that the second round of talks with Iran had been constructive in some respects, but Tehran is still unwilling to accept certain “red lines” set by President Donald Trump.

In an interview with Fox News, Vance stressed: “Our primary interest is to ensure Iran does not acquire nuclear weapons.”

He added: “We made good progress in some areas. They agreed to meet again. But in other areas, it was quite clear that the President has set some red lines that the Iranians are not yet willing to accept or work on.”

The Iranian delegation, led by Foreign Minister Abbas Araghchi, and the American team, headed by special envoy Steve Witkoff and Jared Kushner (Trump’s son-in-law), were present at the negotiations.

Araghchi announced that progress had been made in Geneva and that the atmosphere of the talks had become “more constructive”. He said: “It was decided that both sides would work on drafts of a potential agreement, and after exchanging texts, the date for the next round of negotiations will be set.”

He also added that there is a clear path forward for nuclear talks with the American side, and from Iran’s perspective this path is viewed as “positive”.

Although statements from both sides indicate some progress, investors have yet to fully price in a reduction of geopolitical risk, as clearer signs of a definitive agreement have not yet emerged. Any lasting deal could alter the outlook for Iranian oil supply in the future, but uncertainty continues to prevail for now.

Meanwhile, US special envoy Steve Witkoff announced that Ukraine and Russia have agreed to continue negotiations following the third round of trilateral talks in Geneva.

In a post on X, he wrote: “Today, at President Trump’s direction, the United States chaired the third round of trilateral talks with Ukraine and Russia.”

Witkoff thanked Switzerland for hosting and added: “Both sides agreed to inform their leaders and continue efforts to reach an agreement.”

His remarks came after the first round of peace talks between Russian and Ukrainian delegations, mediated by the US, ended without significant progress.

Analysts believe that any shift in the geopolitical balance could add a risk premium to oil prices.

Markets are also awaiting US inventory data; the American Petroleum Institute (API) report is due out later on Wednesday, with the official Energy Information Administration (EIA) report expected on Thursday.