WTI Oil Prices Rebound Amid Ongoing US-Iran Negotiations

West Texas Intermediate (WTI) oil prices have rebounded and are on track for a monthly gain of around 5.5%. The lack of progress in US-Iran negotiations to reopen the Strait of Hormuz keeps geopolitical risks elevated, even as Middle East supply conditions improve.

Saudi Arabia resumed tanker loadings at Yanbu after restarting its East-West pipeline, which provides an alternative route around Hormuz. Goldman Sachs estimated that Gulf Oil exports recovered to around 23.3 million barrels per day last week, broadly matching their 2025 average.

The US also announced that it would offer up to 40 million barrels from its Strategic Petroleum Reserve. However, the data released by the US Energy Information Administration (EIA) on Wednesday showed that crude inventories increased by 922,000 barrels last week, above market expectations for a decline of around 300,000 barrels.

A deal between Washington and Tehran could remove some of the geopolitical premium from oil prices. In contrast, a prolonged stalemate could support further gains in WTI.