Crude oil stabilized near $98 per barrel on Wednesday after sharp swings in the previous session, as investors weighed conflicting signals over diplomatic progress between the US and Iran. Prices had slumped on Tuesday following a visit by Pakistan’s army chief, Field Marshal Asim Munir, to Tehran, where he met senior Iranian diplomatic and military officials to discuss bilateral relations and the status of talks with Washington.
However, a diplomat involved in the negotiations rejected reports that an agreement was imminent, while confirming that efforts to resolve the conflict are ongoing.
Oil prices are up more than 10% this month, driven by mounting supply concerns amid escalating hostilities involving Saudi Arabia and Iran-backed Houthi forces, as well as the continuing conflict between Russia and Ukraine. At least 18 vessels have been attacked in the Strait of Hormuz over the past two weeks. Despite these disruptions, crude shipments from the Middle East have largely rebounded and are now estimated at around 80% of prewar levels.
