Crude oil prices advanced on Friday as investors closely monitored developments surrounding ongoing US-Iran peace negotiations and continued geopolitical tensions in the Middle East.
Market sentiment remained cautious after reports suggested that both sides were still divided on critical issues, including Tehran’s uranium stockpile and control mechanisms related to the Strait of Hormuz, a strategically important global energy transit route.
Brent crude futures rose US$2.38, or 2.3%, to US$104.96 per barrel, while US West Texas Intermediate (WTI) crude futures gained US$1.73, or 1.8%, to trade at US$98.08 per barrel.
Despite the recovery, both crude benchmarks had declined nearly 2% during the previous session, marking their lowest closing levels in almost two weeks.
Investor attention remained focused on diplomatic discussions between the United States and Iran, with markets increasingly doubtful about the possibility of an immediate agreement.
A senior Iranian official reportedly stated that no formal deal had been reached with the United States, although negotiations had narrowed some differences between the two sides.
Meanwhile, US Secretary of State Marco Rubio acknowledged that there had been “some good signs” in the talks but reiterated concerns over any toll system linked to the Strait of Hormuz.
The uncertainty surrounding the negotiations continued to fuel concerns over potential disruptions to global oil supplies.
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The Strait of Hormuz remains a critical shipping route for global energy markets, with nearly 20% of worldwide energy supplies previously transiting through the passage before the conflict escalated.
According to market estimates, around 14 million barrels per day of oil supply, representing nearly 14% of global supply, has been disrupted due to the ongoing conflict. The affected exports include supplies from major producers such as Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.
The head of ADNOC stated that full oil flows through the Strait may not return before the first or second quarter of 2027, even if the conflict were to end immediately.
Commodity analysts indicated that crude oil prices are likely to remain volatile in the near term as geopolitical uncertainty continues to dominate market sentiment.
According to market analysts, WTI crude is expected to remain within the US$90 to US$110 per barrel range over the coming weeks, largely reflecting persistent concerns over Middle East instability and supply chain disruptions.
Investors are also closely monitoring the upcoming OPEC+ meeting scheduled for 7 June, where seven major oil-producing countries are expected to consider a modest increase in July production output.
However, despite expectations of higher production, supply delivery from several producers continues to remain affected due to the ongoing Iran conflict.
WTI crude oil futures for July 2026 were trading at US$98.00 per barrel, with the day’s trading range between US$97.41 and US$98.34.
Brent crude oil futures for July 2026 were trading at US$104.79 per barrel, with an intraday range of US$104.11 to US$105.15.
Crude oil prices continue to remain supported by geopolitical tensions and persistent uncertainty surrounding US-Iran peace negotiations. Concerns over disruptions in the Strait of Hormuz and delayed restoration of global supply flows are likely to keep energy markets volatile in the near term, even as investors monitor potential production increases from OPEC+ nations.
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Published on: May 22, 2026, 7:47 AM IST
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