Oil prices rise after investors weigh potential de-escalation in the Middle East, reducing concerns over supply disruptions.
West Texas Intermediate crude futures climbed in early trading as investors reassessed geopolitical risks amid reports of progress toward a Middle East ceasefire. Prices had fallen earlier in the week on easing tensions but rebounded as traders balanced supply concerns with diplomatic developments.
Prior sessions saw WTI drop nearly 2% as initial optimism over a Gaza truce faded. Analysts noted that while a deal could stabilize regional output, lingering uncertainty kept markets volatile. Comparable periods of geopolitical calm have historically led to short-term price corrections.
Trading volumes remained elevated, with futures contracts reflecting cautious optimism. The rebound follows a broader commodities rally, though gains were capped by persistent inflation concerns in key economies.