Brent crude settled at $96.00 per barrel, up $1.02 (1.1%), while West Texas Intermediate (WTI) crude increased $1.60 (1.7%) to close at $93.76 per barrel.
Market participants remained focused on developments in the Iran conflict and the status of the Strait of Hormuz, a critical shipping route that normally handles roughly 20% of global oil and liquefied natural gas flows. Iranian officials reported that Tehran is reviewing a proposed agreement with the United States to halt hostilities, though communications between the two sides have reportedly slowed in recent days. President Trump, however, stated that negotiations remain active and expressed confidence that an agreement could be reached within the coming week.
Despite periodic optimism surrounding diplomatic efforts, oil markets continue to price in the risk that significant shipping restrictions through the Strait of Hormuz could persist. Analysts noted that the situation remains highly fluid, with conflicting statements from U.S., Iranian, and Israeli officials contributing to ongoing market volatility.
Supply concerns were further reinforced by warnings from the International Energy Agency that global oil inventories are continuing to decline ahead of the peak summer demand season. In the United States, analysts expect upcoming inventory data to show a drawdown of approximately 4 million barrels of crude oil for the week ending May 29, which would mark a sixth consecutive weekly decline in crude stockpiles.
The combination of constrained Middle East exports, falling inventories, and uncertainty surrounding diplomatic negotiations continues to provide support for crude oil prices despite broader concerns about global economic growth.