Oil holds steady amid shifting Middle East peace hopes

Global oil prices showed stability on Friday as market participants parsed conflicting signals from the Middle East.

Brent crude hovered near $95 a barrel, while the U.S. benchmark West Texas Intermediate (WTI) traded around $93, reflecting a period of consolidation following a roughly 3% decline in the previous session.

The market remains caught between diplomatic rhetoric and the reality of regional hostilities.

While President Donald Trump signaled on Thursday that negotiations with Iran are progressing, the situation on the ground remains fragile, particularly following Hezbollah’s rejection of a U.S.-brokered ceasefire proposal between Israel and Lebanon.

Despite the recent dip, WTI has recorded a gain of more than 6% this week.

This rally is driven by growing skepticism that a comprehensive deal will be reached in the near term to restore stability in the Strait of Hormuz.

The waterway, a critical artery for global energy markets, normally facilitates the transport of approximately 20% of the world’s crude oil.

Supply chain concerns were further underscored by a brief operational disruption at Oman’s Mina Al Fahal export terminal following an explosion.

While the facility, which remains outside the immediate Hormuz conflict zone, has since resumed operations, the incident served as a reminder of the fragility of energy infrastructure in the region.

Market analysts suggest that while headline-driven diplomacy is temporarily curbing bullish momentum, the underlying war premium has not been fully erased.

President Trump continues to maintain an optimistic posture regarding his administration’s efforts, recently stating on social media that he is in the "final negotiations to end the War with the Islamic Republic of Iran," even as he faces political headwinds from Congress regarding his executive approach to the conflict.