Oil Prices Steady Amid Iran Peace Deal Hopes and Supply Glut Fears

Oil prices stabilized near a three-month low on Wednesday as investors weighed the implications of a U.S.-Iran peace deal and the International Energy Agency's warning of a supply overhang next year.

The Brent crude futures price rose by 30 cents, or 0.4%, to $79.26 a barrel, while U.S. West Texas Intermediate gained 24 cents, or 0.3%, to $76.29.

Analysts attributed the price stability to expectations that the Strait of Hormuz will reopen, allowing oil to flow through this critical chokepoint in both directions.

The IEA predicted a significant supply overhang next year, with global supply set to surge by 8 million bpd and demand rising by just 2 million bpd.