WTI Hits Three-Week High as Iran Stalemate Supports Crude

On Thursday, international oil prices showed a surge-then-pullback pattern. WTI crude touched a three-week high of $87.38 during the session before giving back some gains, trading near $86.32 at the time of writing.

**Geopolitical Risk Premium Lifts Oil to Multi-Week Highs**

In early trading, the market continued to digest supply disruption risks from US-Iran tensions. Reports indicated that US President Trump demanded compensation from Iran for past conflicts, while Iran insisted on sanctions relief and an end to military threats, with both sides' public positions clearly diverging. Meanwhile, transit volumes through the Strait of Hormuz remained well below normal levels, intensifying concerns over restricted Middle East crude exports. As a result, WTI crude prices climbed strongly at one point, refreshing highs not seen since late July.

**Signs of De-escalation Trigger Profit-Taking**

However, oil prices pulled back notably after hitting the high. Pakistan said signals from both Washington and Tehran suggested the two countries were "close to reaching some kind of arrangement." Given Pakistan's prior involvement in diplomatic mediation between the two sides, this statement fueled market expectations of a ceasefire and a gradual resumption of transit through the Strait of Hormuz, prompting some long positions to take profits and pushing prices down from intraday highs. Market analysts believe geopolitical developments remain the core driver of current oil price volatility, with any news on negotiation progress likely to trigger sharp swings in the oil market.