Crude Oil Prices Fall

WTI crude futures fell more than 2% in afternoon trading after climbing as much as 3% earlier in the session, as investors grew increasingly hopeful that the conflict involving Iran could ease. US Secretary of State Marco Rubio said there were “some encouraging signs” of a potential agreement with Iran, according to the Financial Times. Rubio added that Pakistani mediators are expected to travel to Iran while Tehran reviews Washington’s latest proposal. Earlier, Reuters reported that Iran’s Supreme Leader had directed that the country’s near-weapons-grade uranium should not be sent abroad, hardening Tehran’s stance on one of Washington’s key demands in the negotiations. Despite today’s pullback, oil prices remain nearly 50% above pre-war levels, supported by ongoing supply tightness. In the United States, nearly 10 million barrels were withdrawn from the Strategic Petroleum Reserve last week, marking the largest release on record.

WTI crude futures rose around 3% to above $101 a barrel on Thursday, partially recovering from the nearly 6% drop over the previous two sessions, as mixed signals from the US and Iran continue to fuel doubts that a near-term deal can be reached or that the Strait of Hormuz could be fully reopened. In the latest development, Reuters reported that Iran’s Supreme Leader has issued a directive that the country’s near-weapons-grade uranium should not be sent abroad, hardening Tehran’s position on one of the key US demands in peace talks. Meanwhile, Iran announced the creation of a “Persian Gulf Strait Authority,” stating that a “controlled maritime zone” would be enforced in the Strait of Hormuz. Oil prices remain elevated, nearly 50% above pre-war levels, supported by supply tightness and ongoing US inventory drawdowns. The country withdrew nearly 10 million barrels from its Strategic Petroleum Reserve last week, marking the largest release on record.

WTI crude futures traded around $99.5 a barrel, after falling nearly 6% over the previous two sessions, as traders cautiously weighed the possibility of a US–Iran deal that could reopen the Strait of Hormuz. However, sentiment remained fragile amid persistent uncertainty and mixed signals from both sides. Iran said it was reviewing the latest US proposal to end the conflict, after President Trump indicated he was willing to wait a few more days to “get the right answers” from Tehran. Meanwhile, Iran announced the creation of a “Persian Gulf Strait Authority,” stating that a “controlled maritime zone” would be enforced in the Strait of Hormuz. Oil prices remain elevated, nearly 50% above pre-war levels, supported by supply tightness and ongoing US inventory drawdowns. The country withdrew nearly 10 million barrels from its Strategic Petroleum Reserve last week, marking the largest release on record.