Iran-Oman Talks Spark Oil Price Gains Amid Ongoing Geopolitical Tensions

Oil prices rose on Thursday as investors remained cautious about the outcome of Iran-Oman talks and whether they will restore flows via the Strait of Hormuz.

The Brent crude futures gained $0.83, or 1.04%, to $80.28 a barrel by 1158 GMT, while U.S. West Texas Intermediate futures added $0.61, or 0.81%, to $75.83.

Tim Waterer, chief market analyst at KCM Trade, said traders still remembered the short-lived Memorandum of Understanding signed in June, which led to understandable anxiety that any new deal could prove equally fragile.

A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, one of the biggest concessions yet to Iran. Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.

Despite some progress in negotiations, geopolitical risks persist, with Waterer warning that until verifiable increases in volumes are seen, the market will continue to price in a degree of supply risk.