By 0032 GMT, Brent crude futures had climbed 88 cents, or 0.9%, to $102.15 a barrel, while US West Texas Intermediate crude advanced $1.12, or 1.2%, to $96.20 per barrel.
A day earlier, both benchmarks had tumbled more than 7%, touching their lowest levels in two weeks after optimism grew over the possibility of the conflict in the Middle East coming to an end. However, some of those losses were trimmed after US President Donald Trump remarked that direct talks with Tehran were still premature. Adding to the uncertainty, a senior Iranian lawmaker dismissed the American proposal as closer to a “wish list” than a practical agreement.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said peace discussions are expected to continue at least until the upcoming US-China summit next week, though uncertainty over developments after that remains high.
Trump is scheduled to meet Chinese President Xi Jinping next week.
Kikukawa noted that the broader expectation remains for oil prices to stay elevated.
Meanwhile, Iran stated on Wednesday that it was examining a peace proposal put forward by the United States. According to sources, the proposal seeks to formally conclude the war, although major sticking points remain unresolved, including Washington’s demands that Tehran halt its nuclear programme and reopen the Strait of Hormuz.
