Oil Prices Edge Higher Amid US-Iran Deal Uncertainty and Strait of Hormuz Tensions
Oil prices have shown signs of recovery in recent days, fueled by uncertainty surrounding a proposed US-Iran deal that could open the Strait of Hormuz to global energy supply. The West Texas Intermediate (WTI) futures on NYMEX rose to near $77.80 on Thursday, extending a recovery move from the previous day. This comes after US President Donald Trump announced that he had suspended planned strikes on Iran following its agreement to 'Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT'.
However, hopes for a swift resolution were short-lived as Tehran revealed it is close to finalizing a proposal with Oman for joint management of the chokepoint. This development has sparked concerns among global leaders who support freedom of navigation through the passage.
The uncertainty surrounding the proposed deal and ongoing tensions between Iran-aligned Houthis and Saudi Arabia have contributed to a bearish near-term bias in oil prices, according to technical analysis. The WTI US Oil trades at around $77.80, below its 20-day exponential moving average (EMA) of $79.32.