WTI holds losses around $82.50 on renewed US-Iran diplomatic hopes
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WTI drops amid renewed hopes for a diplomatic solution to the US-Iran conflict.
Pakistan confirmed ongoing US-Iran negotiations aimed at restoring stability in the Strait of Hormuz.
Saudi Arabia discussed forming a maritime coalition with 43 nations to safeguard key shipping routes.
West Texas Intermediate (WTI) oil price remains in the negative territory for the second successive day, trading around $82.60 per barrel during the Asian hours on Friday. Crude oil prices have lost ground following renewed hopes for a diplomatic solution to the US-Iran conflict. Pakistan's Foreign Ministry spokesperson Tahir Andrabi confirmed that negotiations between the United States (US) and Iran are currently ongoing to restore stability, particularly within the critical Strait of Hormuz.
Additionally, shipping through the strait has picked up in recent days, with the US claiming its navy successfully escorted several tankers across the waterway. This increase in tanker traffic after a recent slowdown has allowed millions of barrels of crude to pass through safely.
Meanwhile, efforts to secure regional water transport are expanding into the Red Sea. Saudi Arabia held talks with representatives from 43 countries to discuss forming a maritime coalition aimed at safeguarding key shipping routes. This initiative follows a blockade imposed last week by Iran-backed Houthi militants, which threatened commercial trade in the region.
Despite the recent dip, West Texas Intermediate (WTI) crude remains on track to post a monthly gain of over 18%, driven by fears that renewed fighting between the US and Iran could trigger further disruptions to Middle Eastern energy supplies. The US military launched fresh strikes on Iranian targets in response to Tehran’s attacks on US assets across the region.
Kazakhstan's primary oil export terminal in the Black Sea closed on Thursday for the third time this month, suspending crude tanker loadings after Ukrainian drones struck two vessels near Russia's Novorossiysk port.
According to TD Securities, the risk backdrop in the oil market continues to deteriorate, with the bank cautioning that "supply risks keep piling up" even as investors focus on positioning and short-term flows. The firm argues that the accumulation of disruptions and geopolitical flashpoints is increasingly difficult to ignore, reinforcing its view that tightening physical balances should remain a key driver for crude prices.
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