WTI crude oil futures reversed higher on Thursday following reports of Iranian ballistic missile launches.

Iran has said it is shifting toward a pre-emptive doctrine, and increasing signs of that shift are emerging as the country struggles to disrupt shipping in the Strait of Hormuz. The strait is one of the world's most important oil chokepoints, with roughly a fifth of globally traded petroleum liquids passing through it, so any escalation there directly feeds the geopolitical risk premium priced into crude.

The price movement marks a sharp turnaround from late August. On August 26, WTI traded as low as $79, but it has since climbed back above $90. The move illustrates how quickly sentiment in oil markets can flip between supply-risk worries and expectations of easing conflict, with headlines around Iran and Ukraine negotiations driving swings in both directions over the span of days.

Earlier pressure on oil had come partly from a report that Kushner and Witkoff will visit Moscow and Kyiv this weekend in a renewed push for peace negotiations, according to Bloomberg. The two have visited Russia multiple times, but this would be their first visit to Kyiv since the start of Russia's 2022 invasion. Progress in those talks is watched by energy traders because a durable ceasefire could ease sanctions and disruption risks around Russian energy flows, one of several supply variables keeping oil volatile alongside Middle East tensions.

Ukrainian Foreign Minister Andrii Sybiha also told reporters on Thursday that he saw a "new dynamic" coming in peace efforts.

Traders are likely to watch upcoming statements from both the Iranian and Ukrainian diplomatic tracks, as well as any confirmation of the Moscow-Kyiv visit, for the next direction in crude.

Source: investingLive