Oil opened slightly lower in early trade as markets balanced escalating Iran–US tensions against renewed nuclear talks and rising tariff concerns that threaten global demand.Summary:Oil opens slightly softer in Sunday evening Globex tradeIran–US conflict risk underpins geopolitical risk premiumFresh nuclear talks scheduled for Thursday temper escalation fearsRising tariff concerns weigh on global growth outlookMarket balancing supply disruption risk vs demand headwindsOil prices opened lower in early Sunday evening trade on Globex, as traders weighed mounting geopolitical risks against renewed concerns over global growth.On the supportive side, tensions between the United States and Iran continue to underpin a geopolitical premium in crude. Reports that President Donald Trump is considering potential military options against Iran, alongside warnings that diplomacy may be running out of time, have kept the market alert to the risk of supply disruption in the Middle East. Any direct confrontation involving Iranian energy infrastructure, shipping lanes, or regional proxies would likely have immediate implications for flows through the Strait of Hormuz, a critical chokepoint for global oil exports.However, those upside risks are being partly offset by signs that diplomacy is not yet exhausted. US and Iranian negotiators are expected to meet in Geneva later this week, raising the prospect, however fragile, of a negotiated framework that could reduce immediate escalation risk. Even incremental progress toward a nuclear understanding could take some of the geopolitical bid out of crude.At the same time, broader macro headwinds are reasserting themselves. Renewed tariff uncertainty and rising trade tensions risk dampening global growth expectations, particularly in manufacturing-heavy economies. Slower trade flows and weaker industrial activity would translate into softer oil demand projections, limiting upside momentum.The result is a market caught between competing narratives: a tightening geopolitical backdrop that supports prices versus mounting concerns that trade friction and policy uncertainty could curb demand growth. Early Globex price action reflects that balance, with traders reluctant to build aggressive positions ahead of Thursday’s diplomatic milestone. This article was written by Eamonn Sheridan at investinglive.com.