Oil prices have risen to a two-week high amid delays in negotiations with Iran
Brent crude futures rose by $2.90, or 2.8%, to $108.23 a barrel. US West Texas Intermediate crude rose by $1.97, or 2.1%, to $96.37 a barrel, according to Reuters.
This marked the sixth consecutive day of gains for Brent for the first time since March 2025. The closing price was the highest since 7 April. WTI finished trading at its highest level since 13 April.
Mizuho analyst Bob Yawger noted that the Brent premium over WTI could stimulate demand for oil from the US Gulf of Mexico and help push US oil exports to record levels.
US President Donald Trump discussed Iran’s new proposal for resolving the conflict with his national security advisers. Negotiations are at a standstill, and energy supplies from the region have been cut.
Tamas Varga, an analyst at PVM Oil Associates, stated that the diplomatic standoff is resulting in 10 to 13 million barrels of oil failing to reach the global market each day, exacerbating the shortage.
Over the past 24 hours, at least seven vessels, mostly dry cargo ships, have passed through the Strait of Hormuz. Before the war began on 28 February, around 140 vessels passed through the strait daily, accounting for around 20% of global oil supplies.
In addition, six tankers carrying Iranian oil were forced to return to Iran due to the US blockade.
Russian President Vladimir Putin stated that Moscow is ready to assist Tehran and noted Iran’s desire to preserve its independence amid pressure from the US and Israel.
The European Central Bank is due to hold a meeting on Thursday. The truce in the war with Iran has somewhat eased the pressure for an immediate rate hike, but the uncertainty surrounding the negotiations and the supply situation supports expectations of a rate rise later this year.
Goldman Sachs analysts have raised their oil price forecast for the fourth quarter to $90 per barrel for Brent and $83 per barrel for WTI, citing a reduction in production in the Middle East.
US petrol futures closed at their highest level since July 2022 for the fourth consecutive day. Oil refining margins also reached their highest level since July 2022.
In the Middle East, the ceasefire between Israel and Lebanon remains fragile. Israel has expanded its air strikes into eastern Lebanon, continuing operations against the Hezbollah group.
