WTI futures recovered to $93 and Brent reclaimed $100 after geopolitical risks in the Strait of Hormuz outweighed earlier deal optimism.
Oil markets erased earlier losses on Thursday as geopolitical tensions in the Strait of Hormuz persisted, overshadowing hopes for a diplomatic resolution. WTI futures briefly fell below $90 a barrel before rebounding to $93, while Brent crude slid toward $95 before recovering to $100.
The intraday reversal followed a sharp sell-off earlier in the session, driven by speculation that a blockade in the critical chokepoint might ease. However, the lack of progress in negotiations kept supply risks elevated, supporting prices.
Traders remained cautious as the standoff continued, with no immediate signs of de-escalation. The recovery in prices reflected lingering concerns over potential disruptions to global oil flows.