Oil Prices Edge Up as Market Monitors US-Iran Peace Efforts
Global oil prices edged higher in early trading on Friday (3/7/2026) after briefly touching their lowest levels since before the conflict between the United States (US)-Israel and Iran broke out in late February. Market participants continue to monitor peace efforts in the Middle East, which have the potential to maintain the smooth flow of global energy supplies.
Citing Refinitiv at 09:35 Western Indonesia Time, Brent crude oil prices stood at US$72.13 per barrel, up 0.46% compared to the previous day’s close. Meanwhile, West Texas Intermediate (WTI) held at US$68.69 per barrel, relatively unchanged from Thursday’s closing position. Brent’s increase extended gains after closing at US$71.80 per barrel a day earlier.
Oil price movements this week have been relatively stable. Compared to last week’s close, Brent is up only about 0.19%, while WTI is down around 0.78%. This limited fluctuation comes after high volatility triggered by the Middle East conflict began to subside, coinciding with emerging hopes that a temporary peace agreement between the US and Iran can be maintained.
Reuters reported that market players remain cautious ahead of the long US Independence Day holiday, when trading activity is expected to be thinner. Optimism regarding the peace process persists, although investors are still waiting for concrete evidence that conditions in the region are truly stable. The Strait of Hormuz, a waterway that previously transported about a fifth of the world’s daily oil and liquefied natural gas (LNG) supplies, is now back in operation, allowing energy distribution to begin recovering.
On the supply side, Kuwait’s oil production surged to 1.65 million barrels per day in June, from around 580,000 barrels per day in May, after the country boosted exports following the temporary US-Iran peace deal. At the same time, at least five supertankers carrying approximately 10 million barrels of Saudi Arabian oil have exited the Strait of Hormuz. Saudi Aramco has also shifted part of its sales scheme to spot pricing to accelerate oil distribution to Asian markets.
The improving supply flow from the Gulf region has caused the geopolitical risk premium that had previously lifted oil prices to diminish. Nevertheless, the market remains wary of potential changes in the Middle East situation that could again disrupt global energy distribution. As long as diplomatic developments remain positive and supplies continue to flow normally, the room for oil price increases is expected to remain limited in the short term.