Oil prices see limited stability amid US-Iran talks

Oil prices recorded limited stability during the current week, amid market anticipation of developments in negotiations between the United States and Iran and their potential impact on global energy supplies. Available information indicates that Brent crude rose by 14 cents to reach $71.94 per barrel, while US West Texas Intermediate crude increased by 9 cents to $68.78 per barrel. Despite this slight increase, Brent crude ended the week with a slight decline compared to last week's close.

Oil markets saw limited activity on Friday due to the closure of US markets in observance of Independence Day, while both crudes recorded their lowest levels since before the recent escalation of tensions during Thursday's session.

Financial analysts noted that the improvement in investor sentiment stems from the continuation of talks between Washington and Tehran, which has bolstered expectations of keeping the Strait of Hormuz open for oil shipping traffic, despite ongoing disagreements over the mechanism for managing the corridor and transit fees.

Analysts at international financial institutions said the negotiation path remains fragile but ongoing, and they expect the current understandings to persist given the declining incentives for escalation on both sides.

The continuation of these tensions raises questions about their impact on the Iraqi economy, which heavily relies on oil revenues, especially in the absence of alternative economic policies that could alleviate the general budget's dependence on global price fluctuations.

The Iraqi government has not issued any official statement regarding the effect of these developments on the budget or plans to diversify sources of income, despite repeated calls from economic experts and legislators to address this dependency.