Brent crude futures climbed in early trading as geopolitical risk premiums remained firmly in place, driven by a widening gap between US and Iranian narratives on the region's stability.
The price action reflects market caution amid reports of renewed military activity in northern Iraq and contradictory diplomatic signals from Washington and Tehran.
According to Greek public broadcaster ERT News, US President Donald Trump described ongoing discussions with Iran as "friendly," suggesting a potential de-escalation path.
However, Iranian officials swiftly denied any such progress, while simultaneously launching attacks into northern Iraq.
This divergence in messaging has left traders uncertain about the immediate trajectory of hostilities, sustaining pressure on energy markets.
The conflicting reports add to a broader arc of diplomatic friction in the Middle East.