Oil Rises on Iran Deal Delays

Crude Oil WTI increased 4% to 94.938 USD/Bbl

WTI crude oil rose as much as 4% to above $95 per barrel as doubts resurfaced over ongoing US–Iran negotiations. It is reported that the peace talks now point to diminished prospects for a broad agreement and opening of the Strait of Hormuz and are now focused on securing a temporary memorandum to avoid renewed conflict. Meanwhile, benchmark prices showed little immediate reaction after President Trump said Israeli and Lebanese leaders had agreed to begin a 10-day ceasefire starting Thursday. Further supporting prices, signs of tightening supply are emerging. After seven consecutive weeks of builds, US crude inventories fell by 9.13 million barrels last week, far exceeding analysts’ expectations for a 154,000-barrel increase, according to the US Energy Information Administration.

WTI crude oil futures rose above $93 per barrel on Thursday as traders balanced signs that the US and Iran may extend a ceasefire with the ongoing double blockade of the Strait of Hormuz, which continues to disrupt flows. Both sides are reportedly considering a two week extension to allow more time for negotiations, while traffic through the key waterway linking the Persian Gulf to global markets remains largely paralyzed as the conflict nears its seventh week. The US has imposed a blockade to restrict Iranian shipments, while Tehran has kept the strait closed to most other vessels and warned it will halt all regional trade if restrictions persist. US Defense Secretary Pete Hegseth said forces remain ready to resume combat if ordered. The conflict has caused a major supply shock, lifting inflation pressures and weighing on growth, though prices have eased from earlier peaks despite remaining significantly above pre war levels.