Crude oil prices were volatile on Thursday, moving towards the upper end of their recent range as the limited progress in talks between Washington and Tehran kept the recovery in Gulf supply on a fragile footing.
has received a US response regarding the reopening of the Strait of Hormuz, but no follow-up has emerged so far.
The lack of progress could leave markets cautious.
At the same time, Middle Eastern crude shipments reached their highest level since the start of the tensions, while Saudi Arabia raised exports and restored around half of the capacity of its East-West pipeline, allowing more barrels to reach the market. Any additional improvements in supply conditions could help cap oil prices.
Looking ahead, crude is likely to retain an upward bias while the diplomatic progress remains limited. A prolonged deadlock or renewed escalation would increase concerns over supply. Any progress on the US proposal, combined with higher Hormuz transits and further restoration of Saudi exports through the East-West pipeline, would place downward pressure on prices.
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