Oil prices inched higher on Thursday as hopes of possible agreement between the US and Iran were offset by Iran’s fresh strikes on US bases. Around 9:30, WTI Crude was trading at $92.03 per barrel, up 3.78%. At the same time, Brent Crude stood at $97.74, higher by 3.66% as situation in the Middle East intensified.Iran’s Revolutionary Guards said they struck a US airbase at around 4:50 a.m. local time, according to the country’s semi-official Tasnim news agency. At the same time, US officials said that Central Command forces shot down four Iranian one-way attack drones that were detected as a potential threat near the Strait of Hormuz. The US military also carried out a strike on an Iranian ground control station in Bandar Abbas, which it said was preparing to launch a fifth drone. With these developments, turmoil in the Middle East has continued to intensify, even as it enters 90 days.During the week, crude prices have already fallen over 5%, dropping below the $100 per barrel mark .Earleir, Iran’s Revolutionary Guards had said that a return to war with the United States was unlikely, while also warning that the country remained prepared to respond to any attack. Meanwhile, US President Donald Trump also indicated that he was not rushing towards an agreement despite earlier remarks over the weekend suggesting that a deal was close. During a cabinet meeting at the White House, Trump reiterated his commitment to securing what he described as a favourable ceasefire deal with Iran.He also dismissed suggestions that the ongoing conflict could politically hurt Republicans in the United States, saying he was focused on preventing Iran from developing nuclear weapons.“They thought they were going to outwait me, you know? We’ll outwait him; he’s got the midterms, I don’t care about the midterms,” he said.“Iran cannot have nuclear weapons. I’m doing that for the world, not just for us,” he added.Speaking about the Strait of Hormuz, Trump said the route would remain accessible to all countries and described it as part of the ongoing negotiations.“It’s international waters. Nobody’s going to control it. We’re going to watch over it. We’ll watch over it, but nobody’s going to control it,” Trump said. “That’s part of the negotiation that we have.”Trump also warned Oman against interfering in the negotiations related to the Strait of Hormuz and rejected the idea of a short-term arrangement that would allow Iran and Oman to control the waterway, which is critical for global oil and gas supplies.“Oman will behave just like everybody else, or we’ll have to blow ’em up,” he said.Meanwhile, the Strait of Hormuz has remained closed for the past three months, straining oil supplies across the world. The conflict began on February 28, when the US and Israel launched joint strikes on Iran. In response, Tehran tightened its noose on the crucial Strait of Hormuz, an oil pipeline that carries 20% of global energy supplies.
