Oil prices ended mixed on Thursday after another volatile trading session, as traders weighed conflicting signals surrounding efforts to extend the fragile ceasefire between the United States and Iran. Brent crude for July delivery, which expires Friday, settled down 58 cents, or 0.6%, at $93.71 per barrel. The more actively traded August Brent contract, however, was trading higher late in the session at $92.97. U.S. West Texas Intermediate crude edged up 22 cents, or 0.3%, to settle at $88.90 per barrel.
Markets continued to swing sharply on headlines tied to negotiations over the three-month Iran conflict and the potential reopening of the Strait of Hormuz, where shipping traffic remains far below normal pre-war levels. Negotiators have reached a tentative agreement to extend the ceasefire for another 60 days, citing sources familiar with the discussions. The agreement still requires approval from President Donald Trump, while Iran’s Tasnim news agency said no memorandum of understanding had been finalized.
“The complex continues to advance grudgingly on bullish developments out of Iran while plunging markedly on even the slightest suggestion of a reopening of the Strait of Hormuz,” Ritterbusch and Associates said in a market note.
Analysts said the market remains heavily focused on the status of the strait and the risk of renewed supply disruptions, with traders reacting far more strongly to diplomatic headlines than to underlying inventory data.
U.S. government data released Thursday showed domestic crude inventories fell by 3.3 million barrels last week, marking a sixth consecutive weekly decline. The draw was smaller than analysts’ expectations for a 4.1 million-barrel reduction. Gasoline and distillate fuel inventories also declined.
Despite tightening U.S. stockpiles, analysts said Middle East developments continue to dominate price action.