Oil Markets React to Uncertain Diplomacy

Brent crude rose modestly following the inconclusive Muscat talks, as traders weighed the possibility of continued diplomacy against the backdrop of a massive US military buildup. Iranian crude was trading at an $11-12 per barrel discount below comparable benchmarks, up from $3 a year earlier, reflecting the bite of sanctions enforcement. Shipping insurers increased war risk premiums for Persian Gulf transits by 15%.