<div id="readability-page-1"><div> <p>Oil markets saw a bounce back Thursday, with prices climbing more than one percent after stumbling earlier in the week. The shift came as investors weighed fragile peace negotiations between the United States and Iran alongside notable drawdowns in U.S. oil inventories.</p><p>Brent crude futures climbed $1.27, or 1.21%, settling around $106.29 per barrel early in the Asian trading session. Meanwhile, West Texas Intermediate (CL) contracts gained roughly $1.29, about 1.31%, reaching $99.55. These gains trimmed losses from the previous day when prices plunged over 5.6% following mixed signals from President Donald Trump about Iran talks.</p><p>Despite Mr. Trump's comments suggesting peace talks were nearing a conclusion, his warning of possible further attacks if Iran resists kept markets on edge. Analysts from ING noted the market's hypersensitivity to news related to Iran, but cautioned that prior optimism had repeatedly led to disappointment. They forecast Brent averaging near $104 per barrel this quarter.</p><p>Complicating matters, Iran ratcheted up control over the Strait of Hormuz, unveiling a &#34;Persian Gulf Strait Authority&#34; to enforce a controlled maritime zone. This move essentially tightens traffic through the strait, a key artery for about 20% of global oil and liquefied natural gas trade prior to recent hostilities.</p><p>The ongoing conflict, sparked by attacks attributed to the U.S. and Israel, has diminished production in the Middle East, pushing countries to tap into commercial and strategic stockpiles at an accelerated pace. The U.S. Energy Information Administration reported its largest single-week release ever from the Strategic Petroleum Reserve, withdrawing close to 10 million barrels.</p><p>This rapid depletion paired with supply disruptions has led to an unexpected plunge in U.S. crude inventories, deepening concerns about overall availability. Mingyu Gao, chief energy and chemicals researcher at China Futures, remarked that maintaining low oil prices is increasingly difficult amid these inventory contractions and strait closures.</p><p>Gao emphasized that with the Strait of Hormuz largely blocked and the ongoing drawdown of global refined products and onshore crude storage, stock levels are expected to reach their lowest point for this time of year in five years by late May to June.</p><p>While the ceasefire in the region has dampened some direct conflict, maritime chokepoints and defensive blockades, such as the U.S. blockade on Iran's coastline, keep supply chains vulnerable and the markets jittery. How long this delicate balance holds remains to be seen, but for now, oil prices reflect the tension between hopeful diplomacy and tangible supply constraints.</p> </div></div>

<p>Oil prices rose over 1% as tensions between the U.S. and Iran persist, alongside significant drops in U.S. oil inventories. Brent crude futures increased to $106.29 per barrel, while West Texas Intermediate reached $99.55. Analysts warn of market sensitivity to Iran news, with expectations of Brent averaging $104 this quarter. Iran's control over the Strait of Hormuz complicates supply, leading to the largest release from the U.S. Strategic Petroleum Reserve. Concerns about low inventory levels and ongoing geopolitical tensions keep markets volatile.</p>

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Oil Prices Climb Amid Iran Tensions and U.S. Inventory Drops