Above $100.00: WTI Oil pulls back from highs amid Iran peace hopes

• Above $100, WTI Oil holds within its recent trading range after retreating from highs near $103.00.
• Prospects for renewed negotiations have improved as initial signs emerge of easing US-Iran tensions.
• Further Oil losses remain limited by continued attacks on vessels seeking passage through the Strait of Hormuz.

WTI is trading at $100.80 a barrel at the time of writing. The US benchmark, West Texas Intermediate (WTI), has slipped from Wednesday’s high near $103.00 but continues to hold above the key $100.00 mark. Oil is edging down on Thursday after remarks by US and Iranian officials suggested efforts to ease tensions, though the decline remains limited so far.

Vice President JD Vance contacted Mohsen Rezaei, the Secretary of Iran’s National Security Council, in an effort to restart peace talks, according to US media reports earlier on Thursday. President Donald Trump rejected that account, saying the contact concerned Iran’s need for medical supplies instead.

Tehran is maintaining close contact with mediators over implementing their seven-day roadmap to reopen the Strait of Hormuz, Iran’s foreign minister, Abbas Araghchi, affirmed. Although there is no concrete evidence of progress towards a peace agreement, the softer rhetoric has prompted cautious optimism that the two sides might resume negotiations. 

Continued attacks in the Strait of Hormuz are nevertheless limiting further declines in Oil prices. A vessel was on fire 9 nautical miles north of Khasab, in Oman, according to the UK Maritime Trade Organisation (UKMTO). Iranian officials also affirmed that traffic through the waterway would remain blocked until their seven-day plan is accepted.

Crude Oil inventories fell by 1.46 million barrels in the week of 23 October, figures published on Wednesday by the US Energy Information Administration (EIA) showed. The decline far exceeded market analysts’ forecast of a 300K drop and followed a 3.06 million-barrel drawdown the week before. By adding to evidence that Oil inventories are being depleted rapidly, the figures are helping prices hold steady at elevated levels.