- Oil prices climbed Thursday as uncertainty over US-Iran talks and disruptions around the Strait of Hormuz kept pressure on global crude supplies.
Oil prices rose more than 2% Thursday, with Brent crude above $105 a barrel and West Texas Intermediate near $94, as traders assessed the outlook for Middle East oil shipments and the latest developments between the US and Iran. The Wall Street Journal reported that limited progress in diplomatic discussions has renewed concerns about prolonged supply disruptions.
Brent futures were up about 2.3% at $105.47 a barrel, while WTI gained about 1.8% to $93.80 in midmorning trading, according to the latest market data.
US-Iran Talks Keep Oil Traders on Edge
The latest move higher comes as US and Iranian officials remain divided over how to end the conflict and restore normal energy flows. US officials met with Iranian representatives Tuesday on the sidelines of the United Nations General Assembly. President Donald Trump said the meeting went well, while Iranian officials have continued to demand changes to the US blockade and the reopening of the Strait of Hormuz.
A commercial vessel was also struck in the Strait of Hormuz on Wednesday, killing one crew member and prompting the evacuation of 27 others, according to Oman's navy. The US military said its blockade had redirected 115 commercial vessels entering or leaving Iranian ports.
The Strait of Hormuz remains critical to global energy markets because large volumes of crude and refined petroleum products normally pass through the waterway.
Oil Supply Disruptions Add to Price Pressure
The market is also watching alternative supply routes and ongoing disruptions to regional energy infrastructure. Saudi Arabia has been working to restore flows through its East-West Pipeline, which provides an alternative route for moving crude around the Strait of Hormuz. The pipeline can transport as much as 7 million barrels of oil per day, although returning to full capacity takes time.
At the same time, traders are watching a potential US restriction on diesel exports. Refined-product markets remain tight, adding another source of uncertainty for energy prices.
For now, oil prices remain highly sensitive to developments around the Strait of Hormuz and the direction of US-Iran diplomacy. A sustained improvement in energy flows could ease prices, while further disruptions could keep crude elevated.