Oil prices surge on US-Iran conflict risks, stalled Ukraine-Russia talks

Oil prices rose by more than three per cent on Wednesday as traders priced in potential supply disruptions amid concerns of conflict between the United States and Iran. This price movement occurred after talks between Ukraine and Russia in Geneva ended without a breakthrough.

Brent crude oil futures were up $2.80, or 4.15 per cent, at $70.22 a barrel at 13:49 EST, while US West Texas Intermediate (WTI) crude futures gained $2.78, or 4.46 per cent, to $65.11. Both contracts fell to two-week lows on Tuesday.

"The big moves in oil prices today are being solely driven by geopolitics, they continue to react to headlines with respect to meetings between the US and Iran, and Russia and Ukraine," said Andrew Lipow, president of Lipow Oil Associates. "The oil market is pricing in additional risk of a supply disruption," he added.