Oil Prices Steady Amid Scepticism Over U.S.-Iran Peace Talks
Brent and WTI crude trade near flat as investors doubt a deal will reopen the Strait of Hormuz. Supply remains tight following a decline in U.S. fuel stocks.
Oil prices remained largely unchanged on Thursday as market participants expressed skepticism that ongoing peace negotiations between the United States and Iran would provide a swift end to the disruptions in the Middle East. Brent Crude Oil futures saw a slight decline of 26 cents, settling at $94.67 per barrel, while West Texas Oil futures rose by 14 cents to reach $91.43 per barrel.
The conflict, which has involved Israel, has resulted in unprecedented interruptions to global energy supplies. The primary cause is the restricted traffic through the Strait of Hormuz, a critical maritime passage responsible for approximately 20% of the world's oil and Natural Gas flows. Toshitaka Tazawa, an analyst at Fujitomi Securities, noted that investors remain wary due to the history of stalled negotiations.
