Oil Prices Rebound Amid US-Iran Export Deal Hopes
Crude oil prices have trimmed their gains to around $94 per barrel after reports emerged that the US and Iran could be working on a deal to re-establish exports from the Persian Gulf. The surge in oil prices peaked at $97 amid concerns over supply disruptions caused by naval blockades against tankers crossing the Strait of Hormuz.
According to reports, US and Iranian negotiators are exploring a deal that would lift these blockades and ease US sanctions on the Iranian economy. This comes after strikes on commercial vessels earlier this month led to a near-standstill in oil exports from GCC countries.
The supply disruption was further compounded by attacks on the East-West pipeline in Saudi Arabia, which had been diverting 7 million barrels per day (bpd) of crude to Red Sea ports. As a result, major OPEC members have cut their oil production, with Saudi output recently dropping to its lowest level since 1990.