Oil prices rise after Russia-Ukraine peace talks end

Oil prices are rising sharply today as investors assess developments in talks on a peace deal between Russia and Ukraine. Today's talks in Geneva lasted less than two hours, and Ukrainian President Volodymyr Zelenskyy described them as difficult. He also accused Russia of deliberately delaying efforts to reach an agreement. At around 14:20 CET, North Sea Brent crude was up about 2.5 percent at more than 69 dollars a barrel. US light crude WTI had gained nearly 2.7 percent and was trading close to 64 dollars a barrel.

"We can see that progress has been made, but for now the positions differ because the talks were difficult," Zelenskyy said.

He did not mention any specific progress, and neither did the head of the Ukrainian delegation, Rustem Umerov. US President Donald Trump has repeatedly suggested in recent days that it is up to Ukraine to take steps to ensure the talks succeed, Reuters reported.

The oil market is also continuing to monitor developments in relations between the United States and Iran. The second round of indirect talks between the two countries on Tehran's nuclear programme took place in Geneva on Tuesday. After the talks, Iranian Foreign Minister Abbas Araghchi said the countries had agreed on key principles that could pave the way for a possible deal.

During the talks, Iran temporarily closed parts of the Strait of Hormuz, where the Iranian Revolutionary Guards were holding an exercise. About a fifth of global oil supplies pass through the Strait of Hormuz.

"Iran now knows Trump's negotiating tactics. It also knows that disrupting oil supplies through the Strait of Hormuz and sending oil prices soaring to 150 dollars a barrel is the last thing Trump would want," said Bjarne Schieldrop, a commodities market analyst at SEB.

Iran's Fars news agency reported today that Iran and Russia will hold a joint military exercise in the Gulf of Oman and the northern Indian Ocean on Thursday. Consulting firm Eurasia Group said on Tuesday that it sees a 65 percent probability of US military action against Iran by the end of April.

Oil prices in dollars per barrel (about 159 litres):