Oil Steadies as Traders Look for Signals on Iran-US Peace Talks

(Bloomberg) — Oil steadied as traders await signs of progress in US-Iran peace talks, while uncertainty surrounds a ceasefire deal between Israel and Lebanon.

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Brent crude traded around $95 a barrel after losing almost 3% on Thursday, while US benchmark West Texas Intermediate was near $93. President Donald Trump said that talks with Iran were going well, despite Tehran-backed Hezbollah rejecting a US-brokered ceasefire deal between Israel and Lebanon.

Futures had rallied earlier in the week as renewed US-Iran clashes eroded hopes for a deal that would lead to a resumption of flows through the Strait of Hormuz, which carried about a fifth of the world’s crude in peacetime. But Trump has since struck an optimistic tone, saying Wednesday the strait would reopen “immediately” if Iran signs a memorandum of understanding to halt hostilities.

WTI prices are down about a fifth since early April, when the US and Tehran agreed a ceasefire.

“The move in WTI from pre-ceasefire highs of $110+ to current levels in the low-$90s was the proverbial low-hanging fruit — signaling the oil market’s relief that all-out war is over,” said Pavel Molchanov, an analyst at Raymond James. “Further price declines will hinge on meaningful recovery in Hormuz.”

Still, there was no sign of progress in talks between Tehran and Washington, with Israel’s continued strikes in Lebanon becoming a major sticking point. Asked by reporters Thursday about Hezbollah’s rejection of the Lebanon ceasefire, Trump said “they didn’t reject me” and claimed “they called us” to discuss a cessation of hostilities.

In the Middle East, Oman’s main oil export terminal at Mina Al Fahal saw delayed loadings after an explosion disrupted operations, according to traders. The facility sits outside Hormuz and is one of the few points Middle Eastern crude can still be loaded amid the war. Operations later resumed.

–With assistance from Sarah Chen.