WTI Oil steadies below $98.00 amid mild hopes of an US-Iran peace deal

Crude Oil prices are hovering near 10-day lows, with upside attempts limited below the $98.00 line on Friday, on track to a nearly 4% weekly decline. Comments by US officials highlighting some advances in the peace negotiations with Iranian authorities are feeding hopes of a negotiated end to the war and keeping Cude prices under pressure.

US Secretary of State Marco Rubio showed hope that Pakistani mediators will advance diplomatic efforts to reach a sustainable peace agreement. The market, however, holds a significant degree of scepticism as positions on key issues such as Iran’s nuclear power and the status of the Strait of Hormuz remain far apart.

The barrel of the US benchmark West Texas Intermediate (WTI), however, trades more than 30% above pre-war levels as the blockage of Hormuz approaches its third month, heightening concerns about a global Oil shortage. The Energy Information Administration (EIA) warned earlier this week that its oil deficit projection is widening in 2026, with consumption outweighing production by 2.56 million barrels per day, which might rise to 8.43 million barrels per day in the second quarter of 2026.

Meanwhile, The New York Times reported on Friday that Iran and Oman have held negotiations to enforce a permanent toll on transit through the Key Hormuz waterway. Beyond that, the CEO of the United Arab Emirates’s (UAE) state oil firm warned that Oil transit would not return to normal until next year, even if the war ended tomorrow. Against this background, declines in Crude prices are likely to remain limited unless the landscape changes dramatically.