Global oil prices rose marginally on Thursday morning as traders awaited clarity on a possible peace deal between Iran and the US.
Prices edged higher after falling around 6% in the previous session as US President Donald Trump said negotiations with Iran were in the final stages.
At 8:16 am, the July contract of Brent crude on the Intercontinental Exchange was trading at $105.48 per barrel, up 0.44% from its previous close. Meanwhile, the June contract of West Texas Intermediate on the NYMEX rose 0.55% to $98.80 a barrel.
Diplomatic signals
Trump told reporters on Wednesday that he is in “no hurry” for a deal with Iran and is going “to give this one shot”.
On the other hand, Iran has indicated readiness for diplomatic engagement to resolve the standoff, while also signalling preparations for a possible confrontation.
Iran further stated that any maritime operation is under the control of the IRGC naval forces, and no military ships or vessels are allowed to transit, according to Al Jazeera.
The report added that over the past few days, a large number of ships, vessels and oil tankers have accumulated on both sides of the , effectively turning the area into a holding zone for maritime traffic.
War rhetoric
Trump, during his commencement address at the United States Coast Guard Academy on Wednesday, said: “Everything’s gone. Their navy’s gone. Their air force is gone. Just about everything. The only question is, do we go and finish it up? Are they going to be signing a document? Let’s see what happens.”
Meanwhile, Tehran maintained that both diplomacy and confrontation remain possible options for the West Asian nation.
In a post on X on Wednesday, said: “Iran has consistently honored its commitments and explored every avenue to avert war; all paths remain open from our side. Forcing Iran to surrender through coercion is nothing but an illusion. Mutual respect in diplomacy is far wiser, safer, and more sustainable than war.”
Energy threat
The blockade of the Strait of Hormuz continues to disrupt global energy trade.
A report by Wood Mackenzie released on Wednesday said a prolonged closure of the Strait of Hormuz poses the single biggest threat to global energy markets in decades.
According to the report, more than 11 million barrels per day of Gulf crude and condensate production is currently curtailed, while over 80 million tonnes per annum of — equivalent to around 20% of global supply — remains inaccessible to global markets.
The report warned that in a worst-case scenario, oil prices could surge to $200 per barrel.