Brent Back Above $88

Brent held above $89 per barrel on Wednesday after rising for five consecutive sessions, as investors assessed mixed signals surrounding a potential deal between the US and Iran. Pakistan’s defense minister said Washington and Tehran are “close to some sort of arrangement” regarding the Strait of Hormuz, while reports indicated that talks between Iran and Oman have entered an advanced stage. However, the positive developments followed a tougher stance from President Donald Trump this week, who said Tehran should pay reparations for those killed in attacks linked to the Islamic Republic. His remarks came in response to a series of demands issued by Iran over the weekend, including war compensation for the US and Israeli military operation in the country. Meanwhile, industry data showed US crude inventories rose by 9.1 million barrels last week, marking their largest increase since February.

Brent prices remained volatile on Tuesday, swinging between gains and losses to trade above $88 a barrel as traders weighed conflicting signals over developments in the Middle East. Prices initially came under pressure after Pakistan’s Defense Minister Khawaja Asif said recent developments suggested the US and Iran were “close to some sort of arrangement,” with conditions appearing to move in favor of peace. Reports that talks between Iran and Oman on reopening the Strait of Hormuz to some maritime shipping had reached an advanced stage also fueled optimism. However, the gains were tempered by uncertainty over whether the strategic waterway will actually reopen. A senior Iranian official said the Strait of Hormuz would remain closed until Tehran’s conditions are met by Washington. On Monday, US President Trump adopted a tougher stance toward Tehran, demanding reparations from Iran for deaths linked to attacks and domestic unrest.

Brent crude oil fell toward $87 per barrel on Tuesday, before recovering to $88.7 per barrel, after Pakistan signaled that the US and Iran could be close to an arrangement aimed at easing tensions and potentially reopening the Strait of Hormuz. Pakistan’s Defense Minister Khawaja Asif said recent developments suggested the sides were “close to some sort of arrangement” and that conditions were moving in favor of peace. Separately, talks between Iran and Oman over restoring maritime traffic through the strategic waterway were reportedly at an advanced stage, according to a Qatari Foreign Ministry spokesperson cited by Al Jazeera. The comments prompted oil prices to reverse earlier gains, highlighting the market’s sensitivity to conflicting signals over the negotiations. Prices had risen sharply after US President Donald Trump adopted a tougher stance toward Tehran, demanding reparations from Iran for deaths linked to attacks and domestic unrest.