Oil Prices Rise Amid Cautious Optimism on Iran-Oman Talks

Oil prices rose on Thursday as investors remained cautious about the outcome of Iran-Oman talks and their potential impact on oil flows through the Strait of Hormuz. Brent crude futures gained $0.48, or 0.60%, to $79.93 a barrel by 0755 GMT, while US West Texas Intermediate futures added $0.29, or 0.39%, to $75.51 a barrel.

'Traders still remember the short-lived Memorandum of Understanding signed in June, so there is understandable anxiety that any new deal could prove equally fragile,' said Tim Waterer, chief market analyst at KCM Trade.

A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a major concession to Iran. The Strait handles about one-fifth of global daily oil and liquefied natural gas supplies.

Despite some positive developments in the talks, geopolitical risks persist, and until there is sustained and verifiable increases in volumes, the market will continue to price in supply risk, Waterer added.