West Texas Intermediate (WTI) oil prices edged up on Thursday, trading at $89.35 per barrel, but remained within the previous day's range as investors focused on the possibility of renewed peace talks between the US and Iran [1]. US President Donald Trump confirmed ongoing and 'productive' negotiations with Tehran, raising optimism that formal peace talks could resume in the coming days [1]. Additionally, Israeli cabinet security member Galia Gamliel stated that Prime Minister Benjamin Netanyahu would meet Lebanese President Joseph Aoun later on Thursday, with any progress potentially contributing to a durable peace between the US and Iran [1].
Geopolitical tensions continue to influence the oil market, as the US maintains a blockade of the Strait of Hormuz, effectively cutting off Iran's sea trade and increasing pressure on Tehran to reach a peace agreement [1]. In response, Iranian officials have threatened to shut the Red Sea if the US continues to block Iranian ports [1]. These developments have kept crude prices from retreating further, despite other market factors.
On the supply side, the US Energy Information Administration (EIA) reported a decrease in US crude oil stocks by 0.913 million barrels last week, contrary to market expectations of a 0.2 million barrel increase and following a 3.081 million barrel buildup the previous week [1]. While this decline in inventories typically supports oil prices, the market's main focus remains on the evolving situation with Iran [1].
CONCLUSION
WTI oil prices are currently influenced by geopolitical developments, particularly the potential resumption of US-Iran peace talks and ongoing tensions in the Strait of Hormuz. While a decline in US crude inventories provides some support, market sentiment is primarily driven by diplomatic and security-related news. Investors are closely watching for further progress in negotiations, which could have significant implications for oil prices.