Global oil prices traded on steady note and marginally higher on Thursday morning as the US and Iran weighed a fresh proposal aimed at ending the conflict in the Gulf.
The recovery followed an almost 8% fall in the previous session after initial reports suggested progress towards a peace deal, alongside US president ’s claims of movement towards a “complete and final agreement” with Iran.
At around 7:50 am, the July contract of Brent crude on the Intercontinental Exchange was trading at $101.49 a barrel, up 0.22% from its previous close. The June contract of West Texas Intermediate rose 0.13% to $95.20 per barrel.
Deal hopes
However, optimism was later tempered after Trump himself said it was “too soon” for face-to-face talks with Iran.
According to a BBC report, Iran said on Wednesday that it was reviewing a new proposal from Washington after US media reports, citing unnamed American officials, said the two sides were moving closer to a one-page memorandum aimed at ending the war in the Gulf.
Donald Trump’s pause on the short-lived “” initiative to guide ships through the Strait of Hormuz, as he claimed progress had been made towards clinching a “complete and final agreement” with Iran, soothed oil markets and raised hopes of a breakthrough.
Reuters, citing a source involved in Pakistani mediation efforts, reported that the parties were moving closer to a deal.
Mixed signals
Frequent shifts in stance and inconsistent messaging from the US president, however, kept markets on edge.
Hours after posting on Truth Social on Tuesday evening that he was suspending “Project Freedom” to see whether “the agreement can be finalized and signed”, Trump said on Wednesday morning that an Iran deal was a “big assumption” and warned that if negotiations failed, bombing at “a much higher level and intensity than it was before” would resume.
On Tuesday, US Secretary of State Marco Rubio said at the White House that Operation Epic Fury, the US-led military strikes on Iran, was over.
Supply worries
The closure of the Strait of Hormuz continues to disrupt global energy supplies.
Mint reported on Wednesday that to facilitate movement of cargo, including exports and energy imports, through West Asian ports unaffected by the Strait of Hormuz blockade amid the ongoing US-Iran conflict.
Speaking to reporters, Opesh Kumar Sharma, director in the ministry of ports, shipping and waterways, said India and West Asian countries were exploring these alternatives to ensure minimal disruption to trade flows, including fuel shipments, at a time when the Strait of Hormuz—a key route for 20% of global oil and gas trade—remains largely closed.