WTI struggles to build on the previous day’s rebound from a more than two-week low as traders await further clarity on a potential US-Iran peace deal. A weaker US Dollar, however, helps cushion downside pressure on the commodity.
West Texas Intermediate (WTI), the US crude oil benchmark, trades sideways during Thursday’s Asian session after rebounding modestly from a more than two-week low below $87.00 in the previous session. The commodity hovers around the mid-$92.00s, down roughly 0.65% on the day, as traders weigh mixed market signals.
Oil prices remain pressured by optimism surrounding a possible US-Iran peace agreement and the reopening of the Strait of Hormuz after US President Donald Trump said a deal with Iran was highly possible. However, losses are limited as investors continue to question the likelihood of a final agreement. Additional support for crude comes from a broadly weaker US Dollar, which tends to benefit dollar-denominated commodities.
Iranian state-linked media rejected reports suggesting a broader agreement had been reached, while the Iranian Students’ News Agency stated that the US proposal contains terms Tehran has already refused. The BBC also reported that Iran is still reviewing the US proposal aimed at ending the conflict and lifting the American blockade on Iranian ports. At the same time, Trump warned that Iran could face attacks “at a much higher level and intensity” if it refuses a peace deal.
On the macro side, the positive impact of the stronger-than-expected US ADP private employment report faded quickly as markets continued to scale back expectations for a Federal Reserve rate hike in 2026. Softer hawkish expectations have kept the US Dollar under pressure after its rebound from a near three-week low, discouraging traders from making aggressive bearish bets on crude oil and prompting caution over further downside.
THE ETERNAL SOVEREIGN 
Leave a comment