Brent and WTI crude prices climb over 2.5% as investors weigh stalled negotiations and supply risks in the Strait of Hormuz.
Oil prices surged early Wednesday, with Brent crude rising $3.3 to $105.88 per barrel and WTI climbing $2.53 to $98.88, as traders reacted to uncertain progress in US-Iran peace talks. The gains followed a volatile week, with both benchmarks poised for weekly declines of 3% and 6%, respectively, amid shifting expectations for a potential deal.
Negotiators remain divided on key issues, including Iran’s uranium reserves and control of shipping lanes through the Strait of Hormuz, which handles roughly 14 million barrels per day—about 14% of global supply. Before the conflict, the strait facilitated exports from major producers like Saudi Arabia, Iraq, and the UAE.
The UAE’s state oil company, ADNOC, indicated that full restoration of oil transit through the strait would not occur until at least early 2027, even if hostilities cease immediately. Market sentiment has been driven by news flow as traders assess the likelihood and timing of any agreement.