Oil Prices Rise as Traders Weigh Iran Diplomacy Against Supply Risks
Oil prices rose on Thursday as traders weighed diplomatic progress involving Iran against lingering risks to oil supplies from the Middle East.
Brent crude futures were up 71 cents, or 0.81%, at $88.55 a barrel at 1128 GMT, while West Texas Intermediate crude futures gained 28 cents, or 0.34%, to $82.51.
The price increase comes as Qatar's prime minister is set to visit Iran on Thursday to relaunch diplomatic talks to end the US-Israeli conflict with Iran, which has effectively closed the vital Strait of Hormuz route for Gulf energy exports.
According to KCM chief market analyst Tim Waterer, 'If Hormuz were to reopen more fully, a further leg lower in crude is possible, but the market is unlikely to price a complete return to pre-conflict levels overnight.'