Oil prices jump as traders watch talks between Ukraine and Russia, US and Iran
Oil prices jump as traders watch talks between Ukraine and Russia, US and Iran
Jake ConleyWed, February 18, 2026 at 7:40 PM UTC
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Oil prices jumped on Wednesday as traders continued to price in geopolitical risk after peace talks between Russia and Ukraine appeared to collapse after only two hours and the status of US-Iran talks remained uncertain.
Futures on Brent crude (BZ=F) and US benchmark West Texas Intermediate (CL=F) rose roughly 4.5% to trade around $70.50 and $65, respectively, re-cresting levels not seen since summer 2025.
In comments after the talks ended, Ukrainian president Volodymyr Zelensky said the Russian delegation made the negotiations "difficult" and accused Russia of intentionally delaying progress toward a deal that could end the war between the two countries, according to Reuters.
Russia's chief negotiator, Vladimir Medinsky, also described the US-led talks, held in Geneva, Switzerland, as "difficult" in comments after the negotiations ended.
The oil market has, since the Russian invasion of Ukraine began four years ago, priced in an increasingly high-risk profile around disrupted Russian oil and gas exports.
Surprise sanctions from the US Treasury in late 2025 against major Russian oil companies Rosneft and Lukoil, designed to cut off Russia's sale of oil — one of the Kremlin's dominant sources of funding for its war chest — prompted an immediate jump in prices as traders predicted lower global supply and a shift by international buyers to other, more expensive sources.
While Russia has been able to continue exporting oil, the Kremlin can only sell to buyers willing to accept the risk of trading with a sanctioned regime in exchange for steep discounts on pricing. Russia's energy sector has also been hurt by a series of drone strikes by Ukraine that have damaged key refineries and other equipment inside Russia.
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Omani Foreign Minister Sayyid Badr Hamad Al Busaidi, US President Donald Trump's Special Representative for the Middle East, Steve Witkoff, and US negotiator Jared Kushner meet ahead of the US-Iran talks in Muscat, the capital of Oman, in early February. (Oman Foreign Ministry/Anadolu via Getty Images) (Anadolu via Getty Images)
At the same time, traders are also closely watching the Middle East.
While Iran's foreign minister Abbas Araghchi said on Tuesday that talks between Tehran and Washington had reached a potential framework for a deal on Iran's nuclear program, the X account for Ayatollah Ali Khamenei spent Tuesday posting incendiary comments about the deal.
Iran also partially closed the Strait of Hormuz for several hours for naval military exercises. The Strait of Hormuz is seen as Iran's biggest lever to pull in any conflict, as the strait sees roughly 20 million barrels of petroleum products per day traverse its waters.
The move comes as the US has steadily built up its naval armament in the region, sending a second aircraft carrier to the region late last week. The US Maritime Authority advised ship captains in early February to avoid Iran's territorial waters if possible, for fear of potential interference or forcible boardings.
However, analysts told Yahoo Finance that a full or even partial closure intended to hamper oil flows in the middle of a conflict would be difficult to impossible for Iran to pull off. A blockage of oil flows would also hurt Iran, which exports most of its oil through the Strait.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.co[email protected].
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