Oil Prices Rise as Iran-Oman Talks Stir Global Supply Concerns

Oil prices rose on Thursday as investors remained cautious over the outcome of Iran-Oman talks and their potential impact on global oil supplies. Brent crude futures gained 2.2% to $81.22 a barrel by 9:14 a.m. ET, while U.S. West Texas Intermediate futures increased 1.9% to $76.63.

The negotiations between Iran and Oman have been ongoing, with the two countries reaching an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz. However, traders are still wary of the deal's stability, given the short-lived Memorandum of Understanding signed in June, according to Tim Waterer, chief market analyst at KCM Trade.

The proposed agreement would give Tehran control over ships entering the Gulf through the Strait of Hormuz, one of the biggest concessions yet to Iran. The Strait handles about one-fifth of global daily oil and liquefied natural gas supplies, making any disruptions a major concern for investors.