Prices of Crude Oil Hold Below $80 on US-Iran Peace Progress
Oil prices traded mixed on Thursday as investors weighed diplomatic efforts to restore shipping through the Strait of Hormuz against persistent regional security risks.
Still, progress towards restoring shipping through the Strait of Hormuz has improved sentiment, reducing fears of prolonged supply disruptions and helping to keep inflation expectations contained.
Brent crude futures for October traded at $79.56 per barrel, up 0.14% from the previous close of $79.45. US benchmark West Texas Intermediate (WTI) futures for September traded at $75.16 per barrel, down 0.08% from $75.22 in the previous session.
Iranian Deputy Foreign Minister Kazem Gharibabadi said Iran and Oman had reached an understanding on almost all issues related to future arrangements for the Strait of Hormuz and were close to finalising an agreement, according to Iran’s state news agency IRNA.
However, Gharibabadi said the understanding did not amount to a full reopening of the Strait of Hormuz.
Regional security risks also remained in focus after Yemen’s Houthi group claimed missile attacks on two Saudi oil tankers in the Red Sea and the Gulf of Aden, highlighting continued threats to maritime shipping.
Meanwhile, US President Donald Trump said he preferred reaching a deal with Iran over military action but warned that the use of force remained an option if diplomacy failed. Trump also said his administration had suspended plans for a major military strike after Iranian officials requested talks.
Separately, US Energy Information Administration (EIA) data showed that commercial crude oil inventories unexpectedly rose by about 2.5 million barrels last week, defying expectations for a draw of around 1.5 million barrels. Oil Prices Slide Below $80 as Markets Price in US-Iran Talks
