WTI Oil eases from highs on Iran peace hopes but remains above $100.00 

• WTI Oil eases from highs near $103.00 but remains within its recent range, above $100.
• Early signs of de-escalation between the US and Iran have boosted hopes of a new round of negotiations.
• Ongoing attacks on vessels attempting to cross the Srtrair of Hormuz are keeping Oil prices from dropping further.

Oil edges lower on Thursday, as comments from US and Iranian officials hint at some efforts to de-escalate tensions, although dips remain limited so far. The US benchmark West Texas Intermediate (WTI) barrel is trading at $100.80 at the time of writing, down from Wednesday’s high near $103.00 but still above the key $100.00 level.

US media reported earlier on Thursday that Vice President JD Vance reached out to Mohsen Rezaei, the Secretary of Iran’s National Security Council, to reactivate peace negotiations. President Donald Trump, however, denied it and said that the contact was related to Iran’s need for medical supplies.

Iran's foreign minister, Abbas Araghchi, affirmed that Tehran remains in close contact with mediators to implement their seven-day roadmap to reopen the Strait of Hormuz. There is no real evidence of any progress towards a peace deal, but the de-escalation in rhetoric has already triggered cautious hopes that the rivals might return to the negotiating table. 

Attacks in the Strait of Hormuz, however, continue, keeping Oil prices from falling further. The UK Maritime Trade Organisation (UKMTO) reported that a vessel was on fire 9 nautical miles north of Khasab, in Oman, and Iranian officials affirmed that the waterway will remain closed for traffic until their seven-day plan is accepted.

On Wednesday, data released by the US Energy Information Administration (EIA) revealed that Crude Oil stocks declined by 1.46 million barrels in the week of October 23, well beyond the 300K drop forecasted by market analysts, and following a 3.06 million-barrel drawdown in the previous week. These figures add to the evidence of the quick depletion of Oil inventories and are contributing to keeping prices steady at high levels.