Oil prices steady after weekly drop amid Middle East ceasefire uncertainty

Oil prices steadied as optimism over US-Iran peace talks helped offset uncertainty surrounding a ceasefire agreement between Israel and Lebanon.

Brent crude traded around $95 per barrel after falling nearly 3% on Thursday, while U.S. benchmark West Texas Intermediate (WTI) was near $93, News.Az reports, citing Bloomberg.

President Donald Trump said that discussions with Iran were progressing well, even as Tehran-backed Hezbollah rejected a U.S.-brokered ceasefire proposal between Israel and Lebanon.

WTI has gained more than 6% this week after earlier uncertainty over the negotiations dampened optimism for a deal that could eventually restore oil flows through the Strait of Hormuz, which in peacetime carries about a fifth of global crude supplies. Despite recent gains, futures remain down roughly a fifth since early April, when the U.S. and Tehran agreed to a ceasefire.

However, there was still no clear sign of progress in talks between Tehran and Washington, while ongoing Israeli strikes in Lebanon continued to complicate diplomatic efforts. When asked on Thursday about Hezbollah’s rejection of the Lebanon ceasefire proposal, Trump said “they didn’t reject me” and claimed “they called us” to discuss ending hostilities.

In the Middle East, Oman’s main oil export terminal at Mina Al Fahal experienced delayed loadings after an explosion disrupted operations, according to traders. The facility, located outside the Strait of Hormuz, is one of the key remaining points in the region for loading crude amid the conflict. Operations were later restored.

On Thursday, Trump also stated in a social media post that he was “right in the middle of my final negotiations to end the War with the Islamic Republic of Iran.” He did not provide further details on the talks and used the post to criticize a vote by the Republican-led U.S. House of Representatives to halt the war.

News.Az 

By Nijat Babayev