WTI Stabilizes Near One-Week Lows Amid Ongoing US, Iran Talks
Oil prices have stabilized near their one-week lows as traders await further developments in US, Iran talks. The West Texas Intermediate (WTI) crude oil price has been trading around $81.00, a level just above its previous high set during the Asian session on Tuesday. Diplomatic efforts between the two nations gained momentum after the US paused its bombing campaign against Iran late last week.
US President Donald Trump said on Monday that the US was having good talks with Iran and that there was a chance of a resolution, which has raised hopes of pulling the US and Iran back to the negotiation table and normalizing Middle East energy flows. This could undermine crude oil prices.
However, analysts at MUFG caution that key risks have not fully dissipated, and it remains to be seen how long the pause in military strikes will last and how quickly traffic through the Strait of Hormuz will resume.