Crude oil prices finished mixed on Wednesday as optimism surrounding potential de-escalation between the United States and Iran weighed on market sentiment, while renewed shipping threats in key export corridors helped limit losses. Brent crude settled slightly higher at $79.45 per barrel, while WTI closed 55 cents lower at $75.22 per barrel.
Markets continued to monitor diplomatic developments after President Trump indicated progress in negotiations with Iran, although Tehran denied formal peace talks were underway. Reports that Iran and Oman have reached an understanding regarding management of the Strait of Hormuz raised expectations that shipping disruptions could eventually ease, reducing concerns over global crude supplies.
Offsetting that optimism, Yemen’s Houthi rebels announced a maritime embargo targeting Saudi ports and vessels and claimed responsibility for an attack on a Saudi oil tanker in the Red Sea, keeping geopolitical risk elevated. Traders also monitored continued disruptions affecting Black Sea shipping and Kazakhstan’s Caspian Pipeline Consortium exports.
Additional pressure came from U.S. inventory data, which showed commercial crude oil stocks increased by 2.5 million barrels last week to 407 million barrels, contrary to market expectations for a drawdown. The unexpected build suggested refinery demand softened modestly, contributing to downside pressure on crude prices.