Oil prices fluctuate amid US-Iran diplomatic efforts

Oil prices experienced volatility as diplomatic negotiations between the United States and Iran progressed. Brent crude settled near $98.18 per barrel, while US West Texas Intermediate (WTI) traded around $90.64.

Diplomatic efforts mediated by Qatar have focused on a proposal to revive a ceasefire and ease tensions near the Strait of Hormuz, a critical global shipping route. Iran indicated it received a response from the US regarding a plan that would involve lifting blockades on Iranian ports in exchange for reopening the Strait to normal maritime passage. However, disagreements persist regarding the sequence of these implementation steps.

Market fluctuations were also influenced by tightening fuel markets and reports of security risks in shipping lanes, including recent projectile strikes on tankers. Meanwhile, Saudi Arabia has resumed oil tanker loadings from its Yanbu port following the restart of its East-West Pipeline. Analysts suggest that while recovering crude flows may temper supply pressures, product shortages and high freight costs continue to impact the broader energy market.