Oil futures climbed sharply this week, marking the biggest weekly rise since October, as traders sensed a thaw in U.S.–Iran diplomatic talks. Prices edged higher after the U.S. signaled willingness to negotiate, easing fears of renewed sanctions that could spike supply costs for global markets.

Analysts note that the uptick reflects a broader shift in risk appetite, as investors weigh the potential for a diplomatic reset against the backdrop of rising geopolitical uncertainty. The move also lifts expectations for tighter supply curves amid ongoing production cuts in the energy sector.

Oil traders now anticipate a gradual rebound, with Brent expected to trade around $90 a barrel by month’s end if talks progress. Market watchers will monitor U.S. policy statements and Tehran’s diplomatic signals for clues that could either sustain the rally or trigger a pullback.

Investors should keep an eye on the U.S. Treasury’s stance on sanctions and Iran’s compliance with the JCPOA, as any shift could reshape the supply outlook. Meanwhile, energy firms may adjust hedging strategies to lock in favorable rates before potential volatility returns in the future.