Oil Prices Sideways, Rubio: Iran Deal Still Needs Time
Oil prices remained stable on Wednesday, with WTI holding above US$93 per barrel after weakening in recent sessions. The market weighed signs of progress toward a US-Iran peace deal against the fact that tensions around the Strait of Hormuz have escalated and key details of the negotiations remain unresolved.
US Secretary of State Marco Rubio said any agreement could still take several days to finalize. Several outstanding issues include the discussion of frozen Iranian assets and Tehran's hesitation to guarantee unrestricted passage through Hormuz, a strategic artery for global energy flows.
On the ground, the US military declared a "self-defense" strike in southern Iran. Meanwhile, Iran's Revolutionary Guard Corps claimed to have targeted an F-35 fighter jet and several drones after they allegedly entered Iranian airspace. This combination of diplomatic headlines and military incidents kept volatility high, discouraging market participants from taking aggressive positions until further clarity.
Regional diplomatic pressure is also increasing. Regional powers such as Saudi Arabia, Qatar, and the United Arab Emirates are reportedly pushing President Donald Trump to prioritize diplomacy, amid concerns that further escalation could trigger Iranian retaliation against neighboring countries.
Fundamentally, the oil market is at the crossroads of two narratives: the potential for de-escalation, which could lower the supply risk premium, versus the risk of disruptions that remain "sticky" as long as the operational status of Hormuz and guarantees of shipping security remain unclear. The next variables to monitor are the final language of the agreement, the mechanisms related to frozen assets, and concrete signals regarding traffic arrangements in the Strait of Hormuz, which will determine whether WTI remains stable or moves sharply again.
Source: Newsmaker.id
