Selling intensified in crude oil markets as the New York session began, with WTI temporarily falling into the $93 range. Speculation spread in the market that expectations for a diplomatic resolution between the US and Iran were rising.
NY crude oil futures came under selling pressure as the New York session began, with WTI at one point falling to the $93 range. Despite a lack of market-moving factors, disruption to global energy supplies was cited as a background factor.
Market participants are focused on diplomatic efforts toward resolving the protracted conflict involving Iran. Reports said that the US and Iran were considering proposals from mediating countries to avoid all-out war, and expectations for easing tensions have influenced price movements.
Information was reported that Qatar was in contact with Iran as a mediator for additional talks, while Iran was also reported to be showing a positive attitude toward a diplomatic resolution. Fars News Agency reported that Chairman Ghalibaf said Iran had conveyed a strong and rational response to the US, adding that Iran was focused on the US response from the perspective of avoiding war.
Some in the market believe these diplomatic developments could ease concerns about crude oil supplies, but caution remains over definitive forecasts. They are being watched as information relevant to assessing future official announcements and progress in negotiations.