(Bloomberg) -- Oil climbed as traders weighed the odds of a nuclear agreement between the US and Iran ahead of talks on Thursday, as a huge deployment of American forces in the Middle East kept the market on edge.

Brent rose above $71 a barrel after falling 1% in the previous session, while West Texas Intermediate was near $66. Secretary of State Marco Rubio and the director of the Central Intelligence Agency briefed senior lawmakers about Iran on Tuesday as the military build-up fueled speculation of an attack.

Most Read from Bloomberg

LA’s Bankrupt ‘Graffiti Towers’ Finds Buyer for $470 Million

An Insurance Expert Appraises the Safety Record of Self-Driving Cars

Oslo Rebuilds Its Government Quarter with a New Focus: Openness

US President Donald Trump said this week he preferred diplomacy, but warned no deal would be “very bad” for Tehran. The market has been sensitive to headlines tied to a potential conflict, with oil rallying at the start of the year, despite widespread expectations swelling supplies would weigh on prices.

The Trump administration has ordered the biggest military build-up in the Middle East since the second Gulf war in 2003, including two aircraft carriers. The US is adding even more assets to the region, deploying 12 stealth F-22 fighter jets to Israel, according to CNN, which cited a defense official.

The next round of nuclear talks between the US and Iran are set for Thursday in Geneva. Trump’s special envoy Steve Witkoff and his son-in-law Jared Kushner are slated to meet again with Iranian Foreign Minister Abbas Araghchi.

Should hostilities escalate, Tehran could retaliate by disrupting shipping through the Strait of Hormuz, which handles about a quarter of the world’s seaborne oil trade. Tankers carrying liquefied natural gas also transit through the narrow waterway separating Iran and the Arabian Peninsula.

“So long as we remain in this realm of uncertainty, oil prices are more prone to upside risk on any headlines out of the US-Iran talks,” said Samantha Hartke, head of market analysis for the Americas at Vortexa Ltd. “Our view is that a prolonged disruption is unlikely given the onerous effect that will have on Iranian trade flows and revenues,” she added, referring to Hormuz.

Most Read from Bloomberg Businessweek

Supreme Court’s Tariff Ruling Is Secretly a Gift to Trump

Americans Can’t Quit Steak, No Matter the Cost

America’s Love of Ube Is Straining Supplies in the Philippines

How Jerome Powell Is Trump-Proofing the Fed

Industry TV Recap: Mergers and Affirmations

©2026 Bloomberg L.P.