Oil Prices Choppy as US-Iran De-escalation Hopes Offset Surprise Crude Build

Oil prices were mixed on Wednesday as investors weighed revived hopes for a de-escalation between the United States and Iran, which could reopen shipping through the Strait of Hormuz. Brent crude futures settled up around $79 a barrel, while West Texas Intermediate futures fell to around $75.

The surprise build in US crude stocks, which rose by 2.5 million barrels last week, also weighed on prices. However, continued disruption at the Caspian Pipeline Consortium and in the Black Sea added to global supply uncertainty and kept volatility elevated.

Analysts remain cautious about how durable any arrangement between the US and Iran might prove. Phil Flynn of Price Futures Group noted that similar agreements in the past have not held for long.