West Texas Intermediate (WTI) US Oil rebounds on Thursday, gaining 2.50% to trade near $90.45 at the time of writing, after three consecutive days of decline. The US Crude Oil benchmark is benefiting from a geopolitical backdrop that remains highly tense in the Middle East, even as some signs of diplomatic easing begin to emerge.
Crude prices had eased in recent days following reports suggesting that Washington and Tehran could reach an agreement to end the conflict and reopen the Strait of Hormuz, one of the world’s most strategic maritime routes for global energy trade. However, uncertainty remains elevated, as shipping activity in the area continues to face significant disruption due to a dual blockade imposed by US forces and Iran.
At the same time, Iran appears to be seeking greater control over this strategic passage. State media reported that any transit tolls imposed on vessels crossing the Strait would be processed through Iranian banks, highlighting Tehran’s efforts to assert authority over this critical energy chokepoint.
On the diplomatic front, markets are now watching the possibility of renewed negotiations between the United States (US) and Iran. US President Donald Trump indicated that talks could resume as early as this week after discussions held last weekend in Islamabad failed to produce a breakthrough.
Meanwhile, Donald Trump also announced a 10-day ceasefire between Lebanon and Israel, set to begin at 5:00 pm Eastern Time. The announcement supports hopes for a regional de-escalation, although tensions remain high and continue to underpin the geopolitical risk premium embedded in Oil prices.
Against this backdrop, energy traders remain highly attentive to developments surrounding the maritime blockade and any diplomatic progress, as both factors could significantly influence the balance between supply and demand in the global Oil market.
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