08:36 AM EST, 02/24/2026 (MT Newswires) -- Oil prices rose to a near seven-month high early on Tuesday as traders continue to add a risk premium to the commodity as U.S. forces remain poised to strike at Iran even as talks between the two countries are scheduled to be held on Thursday.

West Texas Intermediate crude oil for April delivery was last seen up US$0.56 to US$66.87 per barrel, the highest since July 31, while April Brent oil was up US$0.44 to US$71.93.

The price of the commodity is being pushed higher as the Trump Administration assembles an armada in range of the OPEC+ member that claims control of the Strait of Hormuz, the choke point for exports from the Persian Gulf, which supplies around a fifth of global oil demand. Talks between the two countries are expected to be staged in Geneva on Thursday with the United States expected to press Iran to curtail its nuclear program.

Despite the promise of talks, traders continue to push oil prices higher as they assess the risks of a massive supply disruption should the Trump Administration decide to attack and Iran retaliates.

"The most devastating option, from an oil perspective, involves the Strait of Hormuz, a critical chokepoint for oil transit. Mining this pivotal shipping lane or launching drone attacks on tankers would have a profound impact on roughly 20 mbpd of crude oil and product shipments, with unpredictable consequences for oil prices," PVM Oil Associates noted.

Despite the focus on geopolitical risk, the market remains over supplied as global inventories climb amid rising production from OPEC+ and producers in the Americas swamp weak demand growth. OPEC+ will consider another supply boost when it meets next month to set April production quotas as it continues to push for market share