Crude Recovers as Iran Nuclear Standoff Persists

Crude oil futures regained ground on Friday, reversing a portion of the previous session's sharp decline as geopolitical tensions resurfaced. March West Texas Intermediate rose 70 cents to $64 per barrel by midday ET, while Brent crude climbed 85 cents to trade near $68.40. The market had shed nearly $2 on Thursday amid speculation that diplomatic efforts between Washington, Tehran, and Moscow might ease supply risks, but the latest developments suggest a more complex path forward.

Geopolitical Friction and Demand Drivers

Tehran remains firm in its refusal to halt nuclear enrichment activities following talks with U.S. officials. While Iranian representatives indicated a preference for a diplomatic solution to avoid potential American strikes, the stalemate has re-introduced a risk premium into energy prices. For the week, however, both major benchmarks remain on track to finish roughly $1 lower, reflecting the volatile sentiment surrounding global supply security.

Domestic factors are also providing a floor for prices. A prolonged Arctic blast stretching across the U.S. Northeast has triggered a surge in heating oil consumption for both residential use and power generation. With the Northeast representing 80% of the nation’s heating oil market, March ULSD futures climbed 3.55 cents to $2.4285 per gallon.

In the physical markets, Pacific Northwest sub-octane gasoline saw a notable 14-cent jump following a high-volume trade. Despite the spike, regional prices maintain a 40-cent discount to San Francisco’s CARBOB, which remains the most expensive cash gasoline in the United States.