Oil prices stabilized on Wednesday after two consecutive days of heavy losses, as investors watched efforts to ease tensions between the United States and Iran and restore normal shipping through the Strait of Hormuz.
Brent crude rose 26 cents to $79.62 per barrel. US West Texas Intermediate gained 12 cents and traded at $75.90.
Qatar said on Tuesday that mediators had made progress toward reducing tensions. The announcement pushed oil prices lower, although Tehran rejected US President Donald Trump’s claim that negotiations were underway.
Brent closed below $80 on Tuesday for the first time since July 13. The benchmark also fell 5% during the session, extending Monday’s sharp decline as hopes for an agreement strengthened.
Analysts at IG said the main dispute concerns control of the Strait of Hormuz. Iran wants some authority over the strategic waterway, while Washington continues to reject that demand.
Before the current tensions, nearly 20% of the world’s oil and natural gas passed through Hormuz. Supply fears caused prices to rise by about 50% in March.
Qatar’s royal office said Trump and Emir Sheikh Tamim bin Hamad Al Thani discussed ways to narrow differences between Washington and Tehran during a telephone call.
Trump said negotiations had started and described the situation as Iran’s final opportunity to reach an agreement. Iranian officials repeated that no direct talks with the United States were taking place.
Market attention also turned to US inventories. Sources citing American Petroleum Institute data said crude oil and gasoline stocks increased last week, while distillate supplies declined.
US crude inventories reportedly rose by 2.7 million barrels. Higher stock levels can pressure prices because they suggest that supply is growing faster than demand.
For now, traders remain focused on diplomacy, Hormuz shipping activity and official US inventory figures during the coming days and weeks.
