Oil Near $95 Brent, $91 WTI as US and Iran Weigh Two-Week Ceasefire Extension

FANGFANG

Oil steadied around $95 a barrel for Brent and near $91 for WTI as Washington and Tehran weigh a two-week ceasefire extension to restart peace talks. US crude inventories fell across all major categories while exports hit a record high driven by Asian demand and gasoline averaged $4.11 nationwide.

1. Ceasefire Extension Talks

Washington and Tehran are discussing a two-week ceasefire extension to secure more time for peace negotiations, with potential to alleviate the supply shock that has driven crude prices about a third above pre-conflict levels.

2. Oil Price Movements

Brent futures traded just below $95 a barrel and WTI futures hovered near $91 after ending Wednesday largely unchanged, as markets increasingly price in de-escalation despite widely divergent US and Iranian demands.

3. US Stocks and Export Surge

Recent data showed US crude and refined-product inventories declined across all major categories, while total oil exports reached a record high fueled by Asian demand, pushing average national gasoline prices to $4.11 per gallon.

4. Strait of Hormuz Blockade Risks

The US blockade in the Strait of Hormuz and Iran’s ban on most maritime traffic in the Persian Gulf, Sea of Oman and Red Sea continue to paralyze shipments, maintaining clear upside price risks if hostilities resume.

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