Oil Prices Waver Amid Conflicting Iran War Peace Talk Reports

Oil prices steadied on Tuesday after a volatile trading session marked by conflicting reports on the US-Iran war negotiations. West Texas Intermediate (WTI) fluctuated around $98 a barrel, while Brent crude closed below $109. The market experienced significant price swings following an unconfirmed report suggesting an imminent agreement to end the conflict, which had previously pushed prices to five-month highs. However, a diplomat involved in the negotiations stated that reports of an agreement being close are inaccurate.

Geopolitical risks continue to elevate oil prices, with Brent crude surging nearly 80% this year due to disruptions in energy supplies stemming from conflicts in the Middle East and between Russia and Ukraine. Despite recovering Persian Gulf flows, renewed attacks on energy infrastructure maintain elevated concerns. Furthermore, the American Petroleum Institute reported a substantial decrease of 4.9 million barrels in US crude inventories last week, a figure that, if confirmed, would mark the third consecutive weekly decline.