US oil prices rise as investors assess Middle East de-escalation

U.S. oil prices increased in early trading on Thursday, making up for some of the losses from the previous day. Investors are looking at possibilities for easing tensions in the Middle East, while Iran is examining a U.S. proposal aimed at ending the ongoing war that has affected energy supplies from the Gulf. U.S. West Texas Intermediate (WTI) crude futures rose over $1 to reach $91.42 a barrel at the start and were up 93 cents, or 1 percent, at $91.25 a barrel around 2225 GMT. WTI had dropped 2.2 percent on Wednesday. A senior Iranian official informed Reuters that, despite an initial negative reaction, Iran is still considering the U.S. proposal to conclude the war in the Gulf, indicating that Tehran has not outright rejected it yet. White House press secretary Karoline Leavitt stated that U.S. President Donald Trump would impose tougher measures on Iran if the country does not acknowledge its military defeat. Iranian officials have openly dismissed the idea of negotiating with the Trump administration. However, a delay in responding formally to Pakistan, which presented a 15-point proposal on behalf of the U.S., suggests that some individuals in Tehran might be open to discussion.