Oil markets relaxed on Thursday, softened by hopes of a possible easing in US-Iran tensions amid ongoing worries about disrupted supplies. Brent crude futures were down 44 cents, or 0.5%, at $94.49 a barrel while West Texas Intermediate crude fell 70 cents, or 0.8%, to $90.59 a barrel. The dip comes amid growing expectations of diplomatic progress as the White House has expressed optimism about reaching an agreement to end the war with Iran. However, it also warned that economic pressure on Tehran would increase if it continues to remain defiant.Meanwhile, Iran said that it may allow vessels to pass through the Omani side of the Strait of Hormuz if an agreement is secured to prevent a fresh escalation in conflict, source told Reuters. The United States has enforced a blockade on vessels leaving Iranian ports, with its military stating that maritime trade to and from the country has come to a complete standstill. US treasury secretary Scott Bessent announced that waivers allowing some purchases of Iranian and Russian oil without facing US sanctions will not be extended.Toshitaka Tazawa, an analyst at Fujitomi Securities told the agency that crude prices will continue swinging till a peace deal is secured.“Until a peace deal is reached and free navigation through the strait is restored, WTI prices are expected to continue fluctuating between $80 and $100,” he told the agency.The Middle East war has strained the Strait of Hormuz, choking 20% of global oil and liquefied natural gas shipments. The conflict began on February 28, when US and Israel launched joint strikes on Iran, after which Tehran choked the crucial Strait. Now, diplomatic efforts are underway, with US and Iranian officials considering returning for another round of talks, after last negotiations ended without a breakthrough. According to The Guardian, US and Iran are holding indirect talks to potentially extend the two-week ceasefire set to expire on 22 April. The White House, however, said that no formal request for an extension has been made, even as Washington remains actively involved in the negotiations.
