Oil prices surged nearly 4% on Wednesday, following remarks from Vice President JD Vance regarding Iran’s response in ongoing nuclear negotiations. U.S. crude futures climbed $2.65, or 4.25%, settling at $64.98 per barrel by 12:20 p.m. ET, while Brent crude increased by the same amount, achieving $70.07 per barrel.
The spike came after U.S. envoys Steve Witkoff and Jared Kushner held nuclear talks with Iranian officials in Geneva on Tuesday. Iran’s Foreign Minister Abbas Araghchi characterized the discussions as “constructive,” noting that both sides reached a general agreement on guiding principles. However, Vance emphasized that Tehran had not adequately addressed crucial U.S. concerns. In an interview with Fox News, he remarked, “In some ways it went well; they agreed to meet afterwards. But it is clear that the president has set some red lines that the Iranians are not yet willing to acknowledge and work through.”
Vance also reiterated that President Trump reserves the right to use military force if diplomatic efforts fail to curb Iran’s nuclear ambitions. “We have a very powerful military — the president has shown a willingness to use it,” Vance stated, reinforcing the administration’s stance on national security.
Concerns about potential military action have resulted in heightened market anxiety. Sources cited by Axios indicate that any U.S. military campaign against Iran could be extensive, potentially resembling a full-scale war rather than limited strikes like the recent raid that targeted Venezuelan President Nicolás Maduro. Adding to the volatility, Iran’s Revolutionary Guard conducted military exercises this week in the strategic Strait of Hormuz, a critical chokepoint for global oil shipments. According to energy consulting firm Kpler, approximately one-third of all waterborne crude exports transit through this narrow waterway. Although Iranian media reported that traffic in parts of the strait was halted due to these exercises, Kpler analysts noted no observable disruptions.
In response to escalating tensions, Trump has deployed the USS Abraham Lincoln aircraft carrier to the Middle East, with the USS Gerald Ford currently en route as a precautionary measure. “If we don’t have a deal, we’ll need it,” Trump remarked to reporters outside the White House on Friday, referring to the potential for increased military presence should negotiations falter.
As these geopolitical uncertainties unfold, market participants are closely monitoring developments that could impact global oil flow. The possibility of conflict between the U.S. and Iran raises significant concerns over disruptions to critical oil supplies, further fueling price volatility.
The Iranian government has yet to respond to requests for comment regarding these developments. With tensions simmering and the dynamics of international diplomacy shifting, the market remains on edge, awaiting clarity on both the nuclear talks and potential military actions that could alter the global oil landscape.
Original Source: https://www.cnbc.com/2026/02/18/oil-prices-today-iran-trump-nuclear-talks.html
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Publish Date: 2026-02-19 01:30:00
