• WTI rebounds on supply concerns, with Hormuz constrained amid US-Iran ceasefire uncertainty.
• Iran’s Ghalibaf said the US breached three clauses of Iran’s proposal, calling further talks “unreasonable.”
• Traders hesitate to unwind geopolitical risk premiums amid uncertainty over how US-Iran talks will impact oil flows.

West Texas Intermediate (WTI) oil price advances after two days of losses, trading around $91.90 per barrel during the Asian hours on Thursday. Crude oil prices regain ground on renewed supply concerns, with the Strait of Hormuz still largely constrained amid uncertainty over the United States (US)-Iran ceasefire.

Iranian media reported a halt in tanker traffic through the Strait of Hormuz following fresh Israeli strikes in Lebanon. Officials said recent developments breach the terms of the less-than-day-old ceasefire, calling it “unreasonable” to continue talks for a permanent deal with the United States.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the US breached three key clauses of Iran’s 10-point proposal, calling further talks “unreasonable.” Meanwhile, US Vice President JD Vance signaled that the strait could begin reopening as he leads a US delegation to Islamabad for direct talks with Iran this weekend.

Reuters reported that analysts said traders are reluctant to fully unwind geopolitical risk premiums, given the lack of clarity on how US-Iran talks will affect oil flows. The Strait of Hormuz remains a critical chokepoint, linking exports from Gulf producers like Iraq, Saudi Arabia, Kuwait, and Qatar to global markets, and typically carrying about 20% of global oil and gas supply.

Analysts at Standard Chartered said logistical disruptions, security concerns, high insurance costs, and operational constraints will likely limit additional energy flows through the Strait of Hormuz over the next two weeks. Iranian media reported that authorities have issued navigation maps and designated safe routes around potential mines, coordinated with the Revolutionary Guards.