Brent Crude Rebounds to $98.50 After Touching $96 a Barrel

Brent crude futures touched $96 a barrel before recovering to $98.50 as efforts to end the nine-month war between the United States and Iran advanced late in the week. The futures were on pace for their steepest weekly decline since the oil market crash of April 2020.

Oil’s war-risk premium declined after Democrats swept Tuesday’s midterm elections and President Donald Trump said he had no immediate plans to strike Iran. The latest price move follows TokenPost’s earlier coverage of the Iran peace effort.

Prospects for peace and a full reopening of the Strait of Hormuz have reduced crude’s war-risk premium. The conflict has depleted global oil inventories by nearly 700 million barrels, and replenishing them could take considerable time.

Iran’s top security official Mohsen Rezaei said Iran would not negotiate or reopen the Strait of Hormuz until the United States met seven conditions. Among them are lifting U.S. sanctions, releasing frozen Iranian assets and paying war reparations. Washington has insisted that nuclear issues be included in any initial negotiations.