Oil prices steady amid doubts over US-Iran peace talks

Oil prices were largely stable on Thursday, recovering from earlier losses as investors remained uncertain about the prospects of a peace deal between the United States and Iran that could restore disrupted crude flows from the Middle East.

Brent crude futures rose slightly to around $95.02 per barrel, while US West Texas Intermediate (WTI) crude gained to approximately $91.73 per barrel. Both benchmarks had closed with minimal change in the previous session but saw volatility during trading due to shifting expectations over geopolitical developments.

Market sentiment remains heavily influenced by the ongoing US-Israel conflict with Iran, which has significantly disrupted global energy supplies. Analysts note that restrictions on shipping through the Strait of Hormuz—a critical route for nearly one-fifth of global oil and liquefied natural gas flows—have tightened supply conditions and added upward pressure on prices.

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Despite diplomatic efforts and reports of indirect talks involving US and Iranian officials, traders remain sceptical about a breakthrough. Market analysts say previous negotiations have repeatedly collapsed even after showing early signs of progress, contributing to continued uncertainty in oil markets.

Experts estimate that millions of barrels per day of oil supply have been affected due to disruptions in the Strait of Hormuz, with some flows redirected through alternative routes. The situation has raised concerns about sustained supply shortages if tensions continue.

Adding to market pressure, the United States has signalled that it will not renew waivers that previously allowed limited purchases of Iranian and Russian oil without sanctions, further tightening global supply prospects.

Meanwhile, US crude inventories, along with gasoline and distillate stocks, have declined, reflecting stronger exports and reduced imports as countries seek alternative sources to compensate for disrupted supplies.

Analysts expect oil prices to remain volatile in the near term, fluctuating within a wide range as traders monitor developments in diplomatic talks and regional stability.