Oil Rises with Stocks, But Trade and Iran Talks Keep Pressure On

Oil prices climbed on Tuesday, mirroring a rebound in global equity markets, even as investor concerns lingered over the potential economic drag from U.S. tariffs and monetary policy uncertainty. Brent crude futures rose by 80 cents, or 1.2%, to $67.06 per barrel by 1108 GMT. U.S. West Texas Intermediate (WTI) crude for May delivery, expiring today, gained $1.06, or 1.7%, to $64.14. The more liquid WTI June contract added 86 cents, or 1.4%, to trade at $63.27.
Monday had seen a sharp sell-off in both oil and equities, with Brent and WTI sliding over 2% amid growing geopolitical and policy-related jitters.

Oil Tracks Equities
Analysts noted that crude prices have been closely tracking equity market movements. "The daily fluctuations in Brent crude oil prices have been quite well aligned with fluctuations in equity prices," said Bjarne Schieldrop, chief analyst at SEB. U.S. stock futures staged a recovery on Tuesday after losses triggered by President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell. Trump’s call for immediate rate cuts stoked concerns about the Fed’s independence and the broader economic outlook.

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US-Iran Nuclear Talks
Adding to market uncertainty, signs of progress in nuclear negotiations between the U.S. and Iran over the weekend have eased fears of tight oil supply. The two countries agreed to begin drafting a framework for a potential deal, which could eventually lead to the return of sanctioned Iranian oil to the market. "A potential nuclear agreement could shift the supply outlook meaningfully," said UBS analyst Giovanni Staunovo. "Still, the price drop on Monday looked a bit excessive, considering oil demand remains solid."

Meanwhile, Russia’s economy ministry slashed its forecast for the 2025 average Brent price by nearly 17% from its previous projection last September, according to documents reviewed by Reuters. A preliminary Reuters poll indicated that U.S. crude oil and gasoline inventories likely fell last week, while distillate stocks may have risen. Official inventory data from the American Petroleum Institute and the Energy Information Administration is due later this week.