WTI crude futures hovered near $91 per barrel on Thursday after a volatile start to the week, as investors focused on a possible extension of the ceasefire between the US and Iran and weighed the chances of a broader agreement that could end the conflict and reopen the Strait of Hormuz. Reports suggest Washington and Tehran are considering prolonging their two-week ceasefire to allow more time to negotiate a peace deal.
In the meantime, the Strait of Hormuz remains effectively closed, with a US naval blockade of Iranian ports still in place, keeping markets on edge over potential further supply disruptions. Iran has warned it could respond to any prolonged US blockade by suspending oil shipments across the Persian Gulf, the Sea of Oman, and the Red Sea.
Market participants are now shifting their attention to an anticipated second round of US–Iran talks, which are expected to focus on reopening the strait and addressing Iran’s nuclear enrichment program.