Oil Prices Climb over Unsettled US-Iran Peace Talks
With investor sentiment remaining in doubt, crude oil prices climbed again after a sharp daily slowdown, reflecting persistent uncertainties about the supply outlook.
Crude prices climbed on uncertainty over energy flows through the Strait of Hormuz, and declining US crude inventories outweighed optimism over a possible agreement between the US and Iran.
International benchmark Brent crude traded at $101.65 per barrel, up around 0.38% from the previous close. US benchmark West Texas Intermediate (WTI) rose about 0.45% to $95.54 per barrel, compared with $95.08 in the previous session.
Reports on May 6 that Washington was close to signing a one-page memorandum of understanding with Tehran to end the conflict and pave the way for broader nuclear negotiations had pushed oil prices below $100 per barrel.
US President Donald Trump is reportedly expecting final diplomatic progress on the proposed agreement with Iran after completing his official visit to China next week.
According to Axios, citing officials familiar with the matter, Trump expects a response from Tehran within 24 to 48 hours on the proposed memorandum of understanding.
Speaking at a White House event hosting combat sports champions, Trump said Iran was eager to reach an agreement with the US, adding that talks over the past 24 hours had been “very productive” and that a deal was “very likely.”
Iranian Foreign Ministry spokesman Esmaeil Baghaei, however, accused Washington of lacking sincerity in the negotiations. In a statement on the US-based social media platform X, Baghaei said negotiations require a genuine effort to resolve disputes in good faith.
“It needs ‘good faith,’ then, meaning that ‘negotiations’ is not ‘disputation,’ nor is it ‘dictation,’ ‘deception,’ ‘extortion’ or ‘coercion,’” he said.
Meanwhile, the US Central Command (CENTCOM) announced that an empty Iranian-flagged vessel attempting to breach a blockade in the Gulf of Oman had been seized.
Prices also found support after data showed declines in US crude oil and gasoline inventories, reinforcing expectations of strong fuel demand in the country.
The US Energy Information Administration (EIA) said commercial crude oil inventories fell by about 2.3 million barrels last week to 457.2 million barrels.
Strategic crude oil reserves, which are excluded from commercial inventories, also declined by 5.2 million barrels to 392.7 million barrels. US gasoline inventories decreased by about 2.5 million barrels during the same period to 219.8 million barrels. CBN Reduces Rates on Treasury Bills, Returns Excess Bids
