Oil prices fluctuate as traders weigh a potential 60-day US-Iran truce against ongoing Middle East tensions and unresolved disputes.
West Texas Intermediate crude oil erased earlier gains to trade near $88 per barrel after reports of a preliminary US-Iran agreement. Prices had surged to an intraday high of $91.27 on fresh Middle East attacks but fell to $86.28 following news of a 60-day memorandum of understanding to extend the current truce.
The deal, which awaits final approval from US President Donald Trump, aims to ease tensions but leaves key issues unresolved, including Iran’s nuclear program and control of the Strait of Hormuz. On Wednesday, the US imposed new sanctions on Iran’s Persian Gulf Strait Authority, with officials rejecting any tolling system in the critical waterway.
Traders remained cautious, keeping WTI near the lower end of its recent range as they awaited confirmation of the agreement. Market sentiment balanced optimism over de-escalation with lingering geopolitical risks.