US crude oil futures rose by approximately $1 in early Thursday trading as investors weighed the prospects of a potential peace deal in the US-Israel war on Iran, reports Al Jazeera.
US West Texas Intermediate (WTI) crude futures climbed 80 cents to reach $95.88 a barrel by 22:23 GMT, after hitting a session high of $96.33 earlier on Wednesday.
These market movements followed reports indicating that the US and Iran were nearing an initial peace agreement.
Kaho Yu, head of energy and resources at risk intelligence company Verisk Maplecroft, cautioned that oil prices and shipping are unlikely to return to normal until the threat of attacks in the Strait of Hormuz has clearly receded.
“Even with diplomatic engagement continuing, energy markets are unlikely to return quickly to pre-crisis assumptions,” he said, according to the Reuters news agency.
Yu added that while diplomatic efforts between Iran and China focus on de-escalation, the opening of the Strait of Hormuz “remains the real metric that will be watched”.
He noted that actual tanker traffic and energy flows in the coming months will be more significant than diplomatic language in determining whether Beijing can translate its influence with Tehran into lasting stability in the region and beyond.
Bd-pratidin English/TR
