Oil Prices Stabilize Amid US-Iran Truce Hopes, Saudi Arabia Attacks

Oil prices have been hovering near $106 per barrel amidst hopes of a potential truce between the United States and Iran, as well as renewed security risks in the Middle East following recent attacks on Saudi Arabia.

The Brent crude futures price has increased by 2.54% to $105.80 per barrel, while West Texas Intermediate (WTI) crude futures has declined by $1.44 or 1.52% to $93.17 per barrel, according to data from Mettis Global.

The spread between Brent and WTI has widened to its highest level since May, reaching $12.68 due in part to concerns about a US ban on diesel exports potentially increasing domestic supplies.

Negotiators for the United States and Iran are discussing a phased exit from the conflict that could involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, according to Reuters.