Oil prices moved higher on Thursday, driven by uncertainty surrounding the reopening of the Strait of Hormuz and persistent geopolitical risks in the Middle East region. International benchmark Brent crude futures for November delivery traded at $103.30 a barrel at 10:21 a.m. local time (0721 GMT), up 0.2% from the previous close of $103.08. US benchmark West Texas Intermediate (WTI) crude futures for November delivery decreased marginally by 0.07% to $92.22 a barrel from $92.15.
Diplomacy between the United States and Iran has progressed, but critical disagreements over conditions for reopening the Strait of Hormuz continue to weigh on market sentiment. Iranian President Masoud Pezeshkian stated during his address to the 81st session of the UN General Assembly that Tehran remains open to diplomatic channels while maintaining it is not intimidated by US threats and pressure. Iran's top security official Mohsen Rezaei indicated that Washington must implement seven specific conditions put forward by Tehran within three to four days before the Strait of Hormuz can be reopened.
This statement came following indirect talks between Iranian Foreign Minister Abbas Araghchi and a US delegation, conducted through Qatari mediation. US Secretary of State Marco Rubio characterized the recent talks in New York as significant but declined to label them a breakthrough, emphasizing that achieving a comprehensive agreement with Iran would require intensive negotiations over time. US President Donald Trump stated he was deliberating whether to reach an agreement with Iran or pursue other options, adding that he believed a deal could materialize shortly after the November 3 elections.
The ongoing diplomatic exchanges underscore that despite active contacts between the two countries, no agreement has yet been finalized on reopening the strategic waterway or ending the broader conflict. On the security front, the UK Maritime Trade Operations reported on Wednesday that a cargo vessel had been struck in the Strait of Hormuz, citing security sources. This incident adds to mounting concerns over shipping safety in the region.
On the supply side, market participants are monitoring developments related to Saudi Arabia's East-West oil pipeline. Reports indicating that oil flows through this pipeline, which facilitates Saudi crude exports via the Red Sea port of Yanbu, have resumed at limited levels. These modest flow restoration efforts are moderating supply anxieties and restraining upward price momentum.
Source: Anadolu Agency
Source: aa.com.tr