Crude Oil Prices Recover Amid Uncertainty Over Middle East Peace Negotiations
Global oil prices rebounded on Thursday after suffering sharp losses in the previous trading session, as investors reassessed the likelihood of a potential peace agreement in the Middle East and its impact on global crude supply.
U.S. West Texas Intermediate (WTI) crude futures climbed nearly 1% to around $95.88 per barrel during early Asian trading, while Brent crude also recovered above the $101 mark. The rebound came after oil prices had plunged nearly 7% on Wednesday amid optimism surrounding reports of a possible agreement between the United States and Iran to ease ongoing regional tensions.
According to sources familiar with the negotiations, mediators believe both sides are close to finalizing a preliminary memorandum that could formally end the recent conflict. Iran confirmed it is reviewing a U.S.-backed proposal, though major disagreements remain unresolved, particularly over Tehran’s nuclear program and the reopening of the strategically vital Strait of Hormuz.
The Strait of Hormuz remains a major concern for energy markets because nearly one-fifth of the world’s oil supply passes through the narrow shipping route. Disruptions caused by the conflict earlier this year triggered one of the largest oil supply shocks in decades, pushing crude prices above $120 per barrel at their peak.
Despite renewed hopes for de-escalation, analysts warned that oil markets could remain volatile in the coming weeks. Traders are closely monitoring diplomatic developments, as any collapse in negotiations could quickly reignite fears of supply disruptions across the Gulf region. Reuters reported that President Donald Trump stated it was still “too early” to determine whether a final agreement would be reached, while Iranian officials described parts of the U.S. proposal as “unrealistic.”
Meanwhile, falling U.S. crude inventories and continued shipping delays are supporting prices even as peace discussions progress. Market experts believe supply conditions may remain tight in the short term regardless of whether a formal deal is achieved.
