FX.co ★ Oil Pulls Back on Diplomacy Hopes

Crude oil prices eased to about $102 per barrel on Thursday, paring gains from the previous session as investors weighed renewed diplomatic efforts to contain the conflict in the Middle East. Reports indicated that US Vice President JD Vance had spoken with Iranian national security official Mohsen Rezaei, while President Donald Trump confirmed that negotiations were taking place through mediators, though he conceded their outcome remained uncertain. Iranian Foreign Minister Abbas Araghchi likewise reiterated that Tehran remained open to diplomatic solutions.

Despite the pullback, WTI crude is still up more than 14% this month, supported by intensifying clashes involving Saudi Arabia and Iran-backed Houthi forces, as well as ongoing threats to shipping through the Strait of Hormuz. Even so, energy flows from the region have largely recovered and are now close to pre-war levels.