Global crude oil prices increased following reports of a potential peace agreement between Iran and the United States. Early Thursday trading saw US crude futures rise by nearly one dollar per barrel. According to Reuters, West Texas Intermediate (WTI) crude futures climbed 80 cents to reach 95.88 dollars per barrel, after hitting an intraday high of 96.33 dollars on Wednesday.

Market analysts attributed the upward trend to optimism surrounding the possible preliminary peace deal between the two countries. However, Verisk Maplecroft’s head of energy and resources, Kaho Yu, cautioned that oil prices and shipping routes are unlikely to normalize until threats of attacks in the Strait of Hormuz are fully removed.

Yu added that despite ongoing diplomatic efforts, the energy market has not yet returned to pre-crisis conditions. Discussions between China and Iran may help ease tensions, but the market remains focused on whether the Strait of Hormuz will reopen. The coming months’ oil supply and tanker movement will indicate whether lasting stability returns to the Middle East.