WTI steadies near $88.00 as US-Iran peace talks gain attention
By Akhtar Faruqui
Updated: 25 Mar 2026
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West Texas Intermediate (WTI) oil price gains ground after two days of losses, trading around $88.00 per barrel during the early European hours on Wednesday.
- WTI remains steady amid signs of potential US-Iran negotiations.
- The Trump administration reportedly presented Iran with a 15-point peace plan to end Middle East hostilities.
- Iran says “non-hostile” ships can transit Hormuz if they coordinate with its authorities.
West Texas Intermediate (WTI) oil price gains ground after two days of losses, trading around $88.00 per barrel during the early European hours on Wednesday. However, crude oil prices eased as supply concerns began to fade following reports that the United States (US) had put forward a proposal aimed at ending the conflict in the Middle East, raising hopes for a potential ceasefire.
Reports suggest that diplomatic efforts are gaining momentum, with discussions reportedly focused on implementing a one-month truce to create room for formal negotiations between Washington and Tehran. The Trump administration is said to have presented Iran with a 15-point peace plan designed to de-escalate hostilities across the region. However, Iranian officials have denied that any formal breakthrough has been reached, although a senior source acknowledged that indirect communication channels remain active.
Meanwhile, Iran has informed the United Nations Security Council (UNSC) and the International Maritime Organization (IMO) that “non-hostile vessels” may pass through the Strait of Hormuz if they coordinate with Iranian authorities, according to a Reuters’ report.
However, military tensions persist, with continued strikes involving the US, Israel, and Iran, and reports indicating that Washington is preparing to deploy additional troops to the region. To mitigate potential supply disruptions via Hormuz, Saudi Arabia has increased oil exports from its Red Sea Yanbu port to nearly 4 million barrels per day (bpd), significantly higher than pre-conflict levels.
The American Petroleum Institute (API) reported that Weekly Crude Oil Stock rose by 2.3 million barrels in the week ended March 20, against the expected decline of 1.3 million barrels.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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