West Texas Intermediate (WTI) was trading around $90.85 in early Asian markets on Friday, slipping modestly as investors weighed the latest developments in the tentative U.S.–Iran peace talks.
Iranian Foreign Minister Abbas Araghchi warned that the Strait of Hormuz lies within Iranian and Omani waters and that U.S. bases in the region could be targeted for retaliation. Meanwhile, U.S. President Donald Trump said on Wednesday that Iran is “pretty close” to reaching a peace agreement, adding that a deal could be signed over the weekend.
Israeli Defence Minister Israel Katz announced on Thursday that Israel will continue its operations in Lebanon despite a cease‑fire, noting that displaced Lebanese residents will not be able to return. Despite these geopolitical pressures, WTI fell after three days of gains as hopes for diplomatic progress softened.
U.S. crude inventories continued to decline last week. The Energy Information Administration reported that stockpiles fell by 7.974 million barrels for the week ending May 29, compared with a 3.327 million‑barrel draw the previous week, outpacing the market’s expectation of a 4.0 million‑barrel decline.
OPEC Secretary General Haitham Al‑Ghais said the organization still expects strong oil‑demand growth and is not revising its forecasts despite the Middle‑East conflict and the temporary closure of the Strait of Hormuz. He added that one‑off events should not deter investment in the oil sector.
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