Brent Steady, Hormuz Risks Not Yet Disappear
Oil prices stabilized after the United States and Iran struck a positive tone in talks regarding Tehran's nuclear program, indicating progress in finding common ground. This sentiment helped ease some of the risk premium, although the market still considered the direction of negotiations unclear.
Global benchmark Brent held above $67 per barrel after closing down nearly 2% on Tuesday. Meanwhile, West Texas Intermediate (WTI) hovered around $62, reflecting market participants still weighing the impact of diplomacy on supply.
Iran stated that it had reached a "general agreement" with Washington on the terms of a potential deal. A US official also said Iranian negotiators were scheduled to return to Geneva in two weeks with new proposals, leaving the market awaiting further details to determine the direction of negotiations.
Oil prices have tended to strengthen this year as geopolitical concerns, including tensions over Iran, outweighed warnings that the global market is at risk of a supply surplus that could depress prices. Tensions with Iran, which were rocked by anti-government protests in January, have also fueled concerns about disruptions to production or strategic supply routes like the Strait of Hormuz.
From the US side, Vice President J.D. Vance stated on Tuesday that talks were progressing well, but added that Iran had not yet recognized President Donald Trump's red lines. This statement suggests that diplomatic progress still has limits and may not necessarily lead to a final agreement.
The diplomatic signals coincided with increased military activity. Iran announced it would close part of the Strait of Hormuz for several hours for military exercises, while the US reportedly sent a second aircraft carrier to the region. At 8:07 a.m. in London, April Brent crude rose slightly to $67.75 per barrel, while March WTI crude reached $62.63 per barrel. (asd)
Source: Newsmaker.id
