Oil Prices Rebound as U.S.-Iran Talks Stall
Oil prices rebounded on Thursday as hopes for a quick U.S.-Iran diplomatic breakthrough faded and physical Middle East supply remained disrupted. The price of WTI crude rose by $0.90, or 0.98%, to around $93.06 per barrel, while Brent crude increased by $1.44, or 1.40%, to approximately $104.52 per barrel.
The geopolitical backdrop has become a bullish factor for oil prices, with tensions between the U.S. and Iran showing no signs of easing. Iranian President Masoud Pezeshkian told the United Nations General Assembly that Iran would not surrender to U.S. pressure, reinforcing concerns that negotiations could remain difficult.
The physical shipping situation is also supporting prices, with only three commodity vessels reported to have transited the Hormuz Strait on Wednesday, roughly 80% below the recent 10-day average. This sharp decline has renewed concern about the availability of Middle Eastern barrels despite improving Saudi export alternatives.