Oil prices rose over $1 on Thursday, May 7, 2026, as investors weighed the prospects of a Middle East peace deal succeeding.
Brent crude futures were up 54 cents, or 0.5%, at $101.81 a barrel at 0615 GMT, while U.S. West Texas Intermediate gained 45 cents, or 0.5%, to $95.53 a barrel.
Both benchmarks slumped more than 7% on Wednesday, hitting two-week lows on optimism over a possible end to the Middle East war.
They pared losses, however, after United States President Donald Trump said it was “too soon” for face-to-face talks with Iran and a senior Iranian lawmaker said the U.S. proposal was more of a wish list than a reality.
“While peace negotiations are likely to continue at least until next week’s U.S.-China summit, the outlook beyond that remains uncertain,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
Trump and Chinese President Xi Jinping are scheduled to meet next week.
Domestic refiners leave $3.13bn crude unused amid pricing disputes
“The main scenario is that oil prices will remain elevated,” Kikukawa added.
Iran said on Wednesday it was reviewing a United States peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.
An Iranian foreign ministry spokesperson cited by Iran’s ISNA news agency said Tehran would convey its response. Trump said he believed Iran wanted an agreement.
A Pakistan mediation source and another person briefed on the talks said an agreement was close on a one-page memorandum that would formally end the conflict.
