West Texas average (WTI) the US benchmark for Crude Oil traded within a narrow range during Thursday Asian session pausing the previous session recovery from levels below $87.00 which marked a more than two week low. The commodity is currently hovering around the mid-$92.00 area down nearly 0.65% on the day as traders react to mixed market signals.
Market sentiment improved after US President Donald Trump specific that a peace agreement with Iran stayed possible raising hopes of an end to the strife and the reopening of the Strait of Hormuz. This development forced Crude Oil prices although losses stayed limited as investors continued to question how likely such a deal actually is. At the same time a generally weaker US Dollar (USD) helped support the USD priced commodity and prevented a sharper decline in Oil prices.
However Iranian media linked to the state rejected reports indicating that a broader agreement was close. The Iranian Students News Agency also noted that the US proposal includes conditions previously declined by Tehran. In addition the BBC reported that Iran is still reviewing Washington proposal regarding the conflict and the removal of the US blockade on Iranian ports. Meanwhile Trump warned that Iran could face attacks at a much higher level and intensity than before if it refuses to accept a peace agreement.
On the economic front the positive reaction to the stronger than expected US ADP private employment data faded quickly as markets reduced expectations for a Federal Reserve rate hike in 2026. Lower expectations of a hawkish Fed limited the USD recovery from its recent three-week low and stopped traders from placing aggressive bearish positions on Crude Oil. As a result alert remains necessary before expecting any deeper decline in Oil prices.
