Oil prices edged higher after a sharp decline following optimistic remarks from US President Donald Trump about nearing a deal with Iran, according to livemint.com. West Texas Intermediate (WTI) crude traded near $99 a barrel after falling over 5% the previous day, while Brent crude closed near $105.
The price movement came after President Trump told reporters that the US is in the “final stages” of negotiations with Iran, raising hopes for a deal that could lead to a near-term restart of energy flows through the Strait of Hormuz. This critical waterway is vital for global oil shipments, and any agreement to reopen it would ease supply concerns. The oil market has experienced volatility this week due to conflicting news on the progress of talks between Washington and Tehran.
This development matters because oil prices have surged more than 40% since the war began at the end of February, reflecting geopolitical tensions and supply disruptions. The possibility of a deal signals a potential de-escalation that could stabilize global energy markets and reduce the risk premium currently embedded in oil prices. Traders have been pricing in scenarios where Iran resumes exports, which would increase supply and potentially lower prices.
Looking ahead, market participants will closely monitor further announcements from the US and Iran regarding the negotiation status. Any formal agreement to reopen the Strait of Hormuz and resume Iranian oil exports could trigger significant shifts in oil prices and market sentiment. The coming days will be critical in determining whether the tentative optimism translates into a concrete deal.