Investing.com– Oil prices fell slightly in Asian trade on Thursday as focus remained on whether the U.S. and Iran will engage in more peace talks before the expiration of their ceasefire next week.
Caution ahead of key , the world’s largest oil importer, also weighed, as markets looked for any disruptions caused by the Iran war.
West Texas Intermediate crude futures fell 0.4% to $90.90 a barrel by 19:42 ET (23:42 GMT).
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Oil prices were nursing sharp losses this week as U.S. officials touted more peace talks with Iran, after dialogue over the weekend yielded few results. U.S. President Donald Trump said talks could take place in the coming days, and that an end to the war was close.
But the U.S. also said it had completely enforced a naval blockade against Iran, a move that could complicate peace talks.
Reports showed some ships and oil tankers had passed through the Strait of Hormuz this week. Reuters also reported that Iran could consider allowing ships to sail freely through the Omani side of Hormuz without risk of attack, as part of a peace deal.
A tenuous ceasefire between Washington and Tehran appeared to be holding as of early-Thursday, with no new reports of strikes since late last week. But the ceasefire is set to expire on April 21.
A host of reports on Wednesday showed the U.S. planned to send over 10,000 more troops to Iran, raising questions over a further escalation in the war.
Oil had risen as high as $120/barrel since the onset of the Iran war, but struggled to hold gains amid a host of emergency reserve releases in major economies. This week, crude was also pressured by both the IEA and the OPEC warning of softer demand due to disruptions caused by the Iran war.
The Strait of Hormuz remained a key point of focus in the conflict, with Iran having largely blocked the crossing since the onset of U.S. and Israeli hostilities in late-February.
Washington has demanded a full reopening of the crossing as part of any ceasefire agreement.