WTI edges lower below $98.50 on US-Iran deal optimism

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $98.20 during the early European trading hours on Thursday. The WTI price edges lower after US President Donald Trump said talks with Iran are in the final stages.

Bloomberg reported on Wednesday that Trump said the US is in the "final stages" with Iran, bolstering hopes that crude supplies will soon start flowing out of the Strait of Hormuz. This, in turn, weighs on the WTI price. 

However, Trump warned of further attacks unless Iran agrees to a deal. Iranian President Masoud Pezeshkian stated that Tehran was not on the brink of giving in. “Forcing Iran to surrender through coercion is nothing but an illusion,” Pezeshkian posted on X.

Traders remain wary about the outcome of peace talks as disruption to Middle Eastern supply continues. Any signs of escalating tensions between the US and Iran could lift the WTI price in the near term. 

US crude oil inventories fell last week as demand remained elevated. According to the Energy Information Administration (EIA) report, crude oil stockpiles in the US for the week ending May 15 fell by 7.864 million barrels, compared to a decline of 4.306 million barrels in the previous week. The market consensus was for a decrease of 2.9 million barrels.