Key Takeaways

• Mild rebound: Brent crude rose 0.3% to $101.55 per barrel, while WTI also gained 0.3% to $95.37 — both stabilizing after Wednesday’s brutal selloff.
• Massive Wednesday slide: Both contracts crashed more than 7% in the previous session on peace deal hopes.
• One-page deal nears: Axios reported the White House is closing in on a memorandum of understanding with Iran to end the war.
• 48-hour deadline: Tehran’s response to the U.S. proposal is expected by Thursday, per CNN.
• Iran confirms review: A foreign ministry spokesperson confirmed Tehran would convey its response to Washington’s proposal.
• Hormuz factor: The chokepoint handles roughly 20% of global oil trade, making any deal pivotal for prices.
• ING warning: A deal would reduce supply-risk premiums, but delays or setbacks could quickly push prices higher again.
• EIA disappoints bears: U.S. crude stockpiles fell 2.3 million barrels — less than the 3.4 million expected.
• Mixed petroleum picture: Gasoline inventories dropped 2.5 million barrels, while distillates declined 1.3 million barrels.
• Strong exports: EIA data showed robust petroleum exports, highlighting continued demand for U.S. supplies.

Oil prices were little changed on Thursday after tumbling more than 7% in the previous session, as investors weighed prospects for a Middle East peace deal and digested fresh U.S. inventory data.

As of 02:26 ET (06:26 GMT), Brent oil futures expiring in July rose 0.3% to $101.55 per barrel, while West Texas Intermediate (WTI) crude futures also ticked up 0.3% to $95.37 per barrel.

Both contracts crashed more than 7% on Wednesday, after reports suggested Washington and Tehran were moving closer to an agreement that could ease tensions across the region and potentially reopen disrupted oil flows through the Strait of Hormuz.

U.S., Iran Reportedly Near Peace Deal

Axios reported that the White House was nearing a deal with Iran on a one-page memorandum of understanding aimed at ending the war.

The report said Washington expected Tehran’s response within 48 hours and described the negotiations as the closest the two sides had come to an agreement since the conflict began.

Iran is expected to provide mediators with its response to the U.S. proposal by Thursday, CNN reported.

An Iranian foreign ministry spokesperson, cited by Iran’s ISNA news agency, said Tehran would convey its response to the U.S. proposal.

Markets have been highly sensitive to any developments surrounding the Strait of Hormuz, a critical chokepoint through which roughly a fifth of global oil trade flows.

Earlier this week, the United States paused an operation to restore commercial traffic through the Strait of Hormuz after Iran responded with military force.

U.S. Crude Stocks Drop Less Than Expected — EIA

Limiting Thursday’s gains, however, were the weekly U.S. inventory figures from the Energy Information Administration showing that crude stockpiles continued to decline.

The EIA said U.S. commercial crude oil inventories — excluding the Strategic Petroleum Reserve — fell by 2.3 million barrels in the week ended May 1 to 457.2 million barrels. Analysts had been expecting a larger draw of 3.4 million barrels.

Gasoline inventories fell by 2.5 million barrels, while distillate stockpiles — which include diesel and heating oil — declined by 1.3 million barrels.

The report also showed strong petroleum exports, underscoring continued demand for U.S. supplies amid ongoing disruptions to Middle East energy flows.