Oil gains as traders weigh prospects of easing Middle East supply disruptions

Brent crude prices saw a 2.1% increase on Thursday, ending a three-day losing streak, despite a Wall Street Journal report stating that U.S. President Donald Trump is not interested in reviving a June agreement with Iran. This report, citing people familiar with the matter, complicated diplomatic efforts to restart talks. Brent crude futures closed at $89.70 a barrel, while U.S. West Texas Intermediate crude futures settled at $83.53.

Both benchmarks rose as investors reduced expectations of a diplomatic breakthrough that could boost oil flows from the Middle East. Analysts noted that prolonged uncertainty, combined with restricted flows, might have influenced market views. The Strait of Hormuz, crucial for oil and liquefied natural gas supplies, saw a slight improvement in vessel transit on Wednesday, though still below average levels.

Iran's top security official threatened retaliation against U.S. military and economic interests if Washington takes any "mischief" during the discussions, while Russia warned it could strike British targets in response to Ukrainian attacks using British-supplied long-range cruise missiles.