Oil prices have risen, and the tension between the US and Iran has kept the risk premium high.

Oil prices rose slightly in early trading, as the market remains highly sensitive to developments in the Middle East and continues to factor in a significant risk premium ahead of talks between the United States and Iran. Brent crude rose 0.3% to $70.79 per barrel, while West Texas Intermediate rose 0.3% to $65.59 per barrel, after both benchmarks settled lower in the previous trading day. Analysts at the Dutch International Group stated, "Oil prices weakened yesterday as the market hoped for a diplomatic solution to the standoff between the United States and Iran." "However, the presence of US military assets in the Middle East means that the risk of action remains very real." President Trump stated in his State of the Union address that he prefers to resolve the crisis with Iran through diplomatic means, but he made it clear that he will not allow Tehran to obtain nuclear weapons.