London: Oil prices rebounded on Thursday after two straight sessions of losses, as uncertainty surrounding a possible Iran peace deal and sharp declines in U.S. oil inventories renewed concerns over global supply shortages.
According to Beyond Time News, investors remain cautious as tensions in the Middle East continue to impact energy markets and global crude supplies.
Oil Prices Recover
Brent crude futures rose 81 cents, or 0.77%, to $105.83 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 97 cents, or 0.99%, to reach $99.23 per barrel.
Both benchmarks had dropped more than 5% in the previous session after U.S. President Donald Trump said negotiations with Iran were nearing a final stage. However, uncertainty over the outcome of the talks continued to keep markets volatile.
Iran Tensions Keep Supply Concerns Alive
Despite reports of ongoing negotiations, Iran warned against further attacks and announced stronger control measures over the Strait of Hormuz — a critical global shipping route for oil and liquefied natural gas.
Before the conflict, the waterway handled nearly 20% of global energy consumption shipments. Restrictions and disruptions in the area have raised fears of tighter global supplies.
Analysts say the market remains sensitive to developments in the region.
“Oil prices initially fell on hopes of progress in negotiations, but uncertainty over a final agreement continues to support the market,” analysts noted.
U.S. Inventory Draw Adds Pressure
Concerns over supply increased further after fresh U.S. inventory data showed major drawdowns in crude reserves.
The U.S. Energy Information Administration (EIA) reported:
- A nearly 10 million-barrel withdrawal from the Strategic Petroleum Reserve (SPR), the largest on record
- Commercial crude inventories fell by 7.9 million barrels last week
- Gasoline inventories declined by 1.5 million barrels
The figures were significantly higher than market expectations and signaled tightening supply conditions.
Oil Prices Hit Two-Week High as Iran Conflict Escalates
Global Stockpile Worries Grow
Energy analysts warn that ongoing supply disruptions and inventory declines could continue to support higher oil prices in the coming weeks.
With limited flows through the Strait of Hormuz and falling reserves in major economies, concerns are growing that global oil stockpiles could drop below seasonal averages.
Market experts say any setback in Iran-U.S. negotiations could quickly trigger another surge in prices.
Conclusion
Oil prices rebounded as uncertainty surrounding Iran peace talks and sharp declines in U.S. crude inventories renewed fears of tighter global supplies.
According to Beyond Time News, markets are likely to remain volatile as investors closely monitor geopolitical developments and energy stock levels.
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