Oil prices edged higher on Thursday as global markets closely tracked developments around a possible peace agreement between the United States and Iran. Investors remained cautious, leading to fresh buying in both crude oil and safe-haven assets like gold and silver.
Brent crude rose above $101 per barrel, while US West Texas Intermediate (WTI) crude traded above $95 per barrel during the session. The rebound came after oil prices had fallen sharply earlier this week on hopes that easing tensions in West Asia could improve global oil supplies.
However, uncertainty over whether a final agreement will actually be reached kept traders on edge. Reports suggested that negotiations between the US and Iran are still facing major differences, making investors cautious about taking aggressive positions in the market.
The developments also influenced bullion prices. In India, 24K gold was priced around ₹15,214 per gram, while silver traded near ₹2.55 lakh per kilogram. Investors continued to move towards precious metals as a hedge against uncertainty in global markets.
Analysts said oil prices remain highly sensitive to geopolitical headlines, especially because the West Asia region plays a crucial role in global energy supply. Any disruption or easing of tensions can quickly impact crude prices worldwide.
The possibility of smoother oil exports through key shipping routes had earlier pushed prices lower, but doubts over the pace and success of diplomatic talks triggered a recovery in crude during Thursday’s trade.
Global equity markets also remained volatile as investors weighed the impact of changing oil prices on inflation and economic growth. Lower crude prices generally support markets by reducing inflation pressure, while higher oil prices can increase costs for businesses and consumers.