Oil prices experienced an uptick in early Wednesday trading, with Brent front-month futures continuing a remarkable rally that began in March. The ongoing volatility in the Middle East has maintained a sense of unease in the markets, even in light of reports suggesting that the U.S. and Iran might be moving towards a negotiated resolution to the conflict. The front-month Brent contract for June delivery increased by 66 cents, reflecting a 0.63% rise, reaching $104.63 per barrel as of 0010. In March, front-month Brent futures achieved an unprecedented monthly gain of 64%, as reported by data that extends back to June 1988.

U.S. West Texas Intermediate crude futures for May increased by 96 cents or 0.95% to $102.34 per barrel, while June futures rose by 46 cents or 0.49% to $93.62 per barrel. Despite ongoing diplomatic efforts and sporadic statements from the U.S. administration suggesting a swift resolution to the conflict, the lack of significant diplomatic advancements, persistent maritime assaults, and clear threats to energy resources maintain an upward bias on supply risks,” analysts noted. Prices regained a portion of their daily losses from Tuesday, when Brent futures for June delivery closed down over $3 following unverified media reports indicating that Iran’s president was prepared to conclude the conflict.

President Donald Trump also informed on Tuesday that the U.S. could conclude the military campaign within two to three weeks and that Iran is not required to reach a deal to end the conflict, marking his most explicit statement to date regarding his desire to de-escalate the month-long war. Nevertheless, analysts indicate that even with the conclusion of the conflict, the damage to infrastructure is expected to maintain tight supply conditions. Trump has also suggested that he might conclude the conflict prior to reopening the The Strait of Hormuz serves as a crucial passage, facilitating the movement of 20% of the world’s oil and LNG trade, as reported. In March, oil production by the Organization of the Petroleum Exporting Countries decreased by 7.3 million barrels per day compared to the prior month, according to a survey released on Tuesday. This decline highlights the effects of mandatory export reductions resulting from the closure of Hormuz.

The blockage of the strait and subsequent output disruptions have prompted a significant upward revision in the annual oil price forecast, marking a record increase from February to March, as reported by a Reuters poll of economists and analysts. The survey conducted in March forecasts that Brent crude will average $82.85 per barrel in 2026, reflecting an increase of approximately 30% from February’s prediction of $63.85, which was gathered prior to the onset of the war. The $19 increase signifies the most significant annual forecasts in Reuters’ monthly oil poll data, which has been recorded since 2005.