Energy markets saw crude oil futures climb approximately $1 per barrel during Thursday’s early trading session, as investors closely monitored developments in Middle East diplomatic negotiations.
West Texas Intermediate crude futures increased by 80 cents, representing a 0.8% gain to reach $95.88 per barrel by 2223 GMT, after touching a session high of $96.33 earlier in the day.
This upward movement came after the benchmark contract experienced a sharp 7% decline on Wednesday, driven by market optimism surrounding potential resolution to Middle East conflicts following reports that the United States and Iran were approaching preliminary peace negotiations.
According to sources familiar with the mediation process, including one from mediator Pakistan and another briefed on the discussions, negotiators are close to reaching agreement on a single-page memorandum that would officially conclude the ongoing conflict.
On Wednesday, Iran announced it was examining a peace proposal from the United States that, according to sources, would officially terminate the war but would not address key American demands for Iran to halt its nuclear activities and reopen the Strait of Hormuz.
Iran’s ISNA news agency quoted an Iranian foreign ministry spokesperson stating that Tehran would provide its official response to the proposal. Meanwhile, U.S. President Donald Trump expressed his belief that Iran was interested in reaching an agreement.
