London (TDI): Oil prices edged lower on Thursday after rising sharply in the previous session, as Iran signalled that it remained open to diplomacy to end its war with the United States, easing some concerns over prolonged disruption to regional oil supplies.
Brent crude futures fell 92 cents, or 0.9 percent, to $102.16 a barrel by 0900 Pakistan time, while US West Texas Intermediate (WTI) crude declined 77 cents, or 0.8 percent, to $91.39.
The decline followed a roughly 4 percent increase in oil prices during the previous session, with traders reassessing the geopolitical risk premium attached to the conflict.
Iran and the United States remain divided over how to end the war, but a senior Iranian official told Reuters that diplomatic efforts should continue.
Read More: Saudi Oil Exports Under Pressure as Houthi Threat, Hormuz Risks Grow
The official said Tehran was reviewing Washington’s response to Iranian proposals for ending the conflict. The proposals include lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz, according to Reuters.
Iranian security chief Mohsen Rezaei, however, said on Wednesday that Tehran would not reopen the strategic waterway unless its conditions were met.
Read More: Oil Prices Rise Over 3% as Saudi Pipeline Strike, Hormuz Attacks Fuel Supply Fears
The Strait of Hormuz is a major global energy route, and any prolonged disruption could affect crude and fuel supplies and keep upward pressure on international prices.
