Middle East Diplomacy Lifts Oil Prices Amid Ongoing Risks
Oil prices have been on a seesaw, influenced by diplomatic developments in the Middle East. On Thursday, Brent crude futures rose 71 cents (0.81%) to $88.55 per barrel, while West Texas Intermediate crude futures gained 28 cents (0.34%) to $82.51.
The price hike comes as Qatar's prime minister is set to visit Iran in a bid to relaunch diplomatic talks to end the US-Israel conflict with Iran. The visit follows a pause in fighting but no significant breakthrough has been made so far.
However, analysts caution that optimism around a deal could prove premature if negotiations stall or break down again. This would lead to a re-injection of risk premium into prices.
Priyanka Sachdeva, head of market insights at Phillip Nova, noted that Iran's nuclear programme remains a major point of contention and is unlikely to be resolved quickly.