Oil below $100 as markets await US-Iran talks

WTI crude traded at $98.10 after briefly touching $100.40, holding under the $100 mark as markets awaited US-Iran peace talks scheduled to begin in Islamabad this weekend.

European equities were up roughly 0.7% while S&P 500 futures were flat. Traders held risk assets steady and refrained from pushing markets higher ahead of the weekend negotiations.

The talks follow a recent ceasefire and truce between Washington and Tehran as the focus shifts from battlefield developments to diplomacy. Iran has not offered specific goodwill measures for commercial traffic through the Strait of Hormuz ahead of the meetings.

Oil prices rose modestly during the session but retreated from an intraday high of $100.40 amid profit-taking. Analysts say a breakdown in talks could prompt a reassessment of global oil risk premia.

In currency markets the dollar was little changed. EUR/USD held just above 1.1710 and AUD/USD was around 0.7170. Benchmark U.S. 10-year Treasury yields were near 4.29%.

Precious metals and cryptocurrencies saw small moves. Gold traded near $4,763–$4,768 an ounce, silver was about $75.59, and Bitcoin fell roughly 0.4% to about $72,142.

Germany’s final March consumer price index was confirmed at a 2.7% year-over-year increase, matching preliminary estimates.

A market note read: ‘After talking the talk, it is time for US (and Iran) to walk the walk.'

Markets are set to react to the outcome of the Islamabad meetings or to any official updates on the negotiations and regional shipping arrangements.