08:43 AM EST, 02/17/2026 (MT Newswires) -- Oil traded higher early on Tuesday with traders continuing to build in a risk premium as talks between the United States and Iran are slated to take place in Geneva, even as inventories continue to rise.

West Texas Intermediate crude oil for March delivery was last seen up US$0.71 to US$63.60 per barrel, while April Brent crude was up US$0.09 to US$68.74.

With a second U.S. aircraft-carrier strike group sailing to the Persian Gulf region, the market is focusing on the Geneva talks as the Trump Administration looks to limit Iran's nuclear ambitions, while the Islamic Republic wants to continue to enrich uranium. While there appears to be no clear expectation for an outcome from the discussions, the threat of U.S. military action against the country that claims the ability to block the Strait of Hormuz, the choke point for exports from the Persian Gulf, which supplies a fifth of global oil demand, is keeping prices elevated.

"The diplomatic tug-of-war between the US and Iran has not resulted in military action so far; nonetheless, fears of supply disruption have helped keep oil prices stable," PVM Oil Associates noted.

Geopolitical risk is taking attention away from an over-supplied market. In its monthly Oil Market Report released last week, the International Energy Agency warned production growth has risen well above demand, with 2025 global inventories up by 477-million barrels, with a further 49-million barrels rise in January.

The rise in oil stocks comes as OPEC+ and producers in the Americas continue to boost output as demand growth slows. Reuters last week reported OPEC+ will consider another supply boost when it meets next month to set April production quotas as it continues to push for market share, limiting the upside for prices.

"Absent any Middle East supply disruption, the scope for a sustained move (for Brent oil) above US$70 appears limited, given continued emphasis on ample supply and indications that some OPEC members see room to resume output increases in April," Saxo Bank noted.