Oil markets moved cautiously higher in Asian trading on Thursday as reports emerged that Iran was reviewing a U.S.-backed proposal intended to end the conflict, though major uncertainties persisted.
At 20:31 ET (00:31 GMT), Brent futures for May delivery were up 0.8% at $103.02 per barrel, while West Texas Intermediate crude gained 1% to $91.20 per barrel. Both benchmarks had fallen by more than 2% in the prior session.
Reports that Tehran was examining a U.S.-supported plan to halt hostilities tempered some of the recent geopolitical risk premium built into crude. Iran has not formally accepted the proposal, yet officials stopped short of an outright rejection. That ambiguous response has left traders hopeful for a route toward de-escalation while remaining cautious.
At the same time, Iranian authorities publicly denied engaging in direct negotiations with Washington and indicated that significant differences between the parties endure. That lack of clarity kept volatility elevated and trading subdued on Thursday.
Market participants have experienced pronounced swings in prices in recent weeks after the conflict disrupted energy flows from the Gulf, a key region for global crude supplies. Brent had climbed above $119 a barrel earlier this month amid concerns over potential supply outages.
Attention remains focused on the Strait of Hormuz, an essential shipping lane that carries roughly a fifth of the world\'s oil shipments. Any further threat to transits through that waterway is widely seen as likely to prompt additional price spikes.
Prices eased on Wednesday after reports of possible negotiations reduced part of the geopolitical risk premium that had been factored into crude. Investors are also watching signals out of Washington, where officials have warned that stronger measures could follow if Iran does not engage constructively. Those warnings add another layer of uncertainty to the outlook.
Bottom line: A tentative review of a U.S.-backed proposal in Tehran nudged oil prices higher on Thursday, but conflicting statements and unresolved differences have left the market on edge.