DUBAI, United Arab Emirates — Oil prices spiked overnight on geopolitical concerns, as U.S. President Donald Trump struck a sharply more negative tone over the progress of nuclear talks with Iran and announced the withdrawal of some American personnel from the Middle East.
The developments mark a stark shift after several rounds of mostly indirect U.S.-Iran talks that were previously described as “positive” and “respectful.”
Both the Trump administration and Iran have expressed their desire to strike a deal. For Trump, it would deliver a political and diplomatic win that the previous Biden administration failed to achieve. For Iran, it would mean desperately needed relief from sanctions that have crippled its economy.
It now looks increasingly unlikely.
“They [U.S. military personnel] are being moved out because it could be a dangerous place and we will see what happens... We have given notice to move out,” Trump told reporters on Wednesday. The Pentagon ordered the withdrawal of troops and non-essential staff from embassies in Baghdad, Kuwait and Bahrain.
