WTI crude oil futures climbed above $91 per barrel on Thursday, while Brent crude futures moved toward $97 per barrel. The rebound followed losses in the previous session as traders reacted to a fresh escalation between the United States and Iran. The latest developments weakened expectations for a near-term peace agreement that could end the conflict and reopen the Strait of Hormuz. The waterway remains one of the world's most important energy chokepoints. Roughly one-fifth of global oil supplies typically pass through the strait. Any disruption immediately grabs the attention of energy traders and raises concerns about global supply security. So what changed sentiment this week? Military Escalation Clouds Peace Prospects Reports indicated that US forces struck an Iranian military site believed to threaten American troops and commercial shipping routes near the Strait of Hormuz. US forces also reportedly intercepted Iranian drones. Iran responded by claiming that its Revolutionary Guard targeted a US airbase, though officials did not disclose the location. The exchange highlighted how fragile negotiations remain despite ongoing diplomatic efforts. Washington and Tehran continue to disagree on several major issues. Iran wants to maintain influence over the Strait of Hormuz and preserve its nuclear program. The United States remains opposed to both positions. Those disagreements have made investors question whether a breakthrough can happen anytime soon. As a result, risk premiums returned to the oil market and supported prices. Trump's Comments Add Another Layer of Uncertainty The political situation became even more complicated after President Donald Trump issued strong remarks regarding Oman and the future of the Strait of Hormuz. Trump rejected any proposal that would allow regional powers to control shipping through the waterway. He stated that the strait should remain open to everyone and described it as part of international waters. His comments came after reports suggested that Iran and Oman had discussed a mechanism that would allow them to collect tolls from ships passing through the strategic route. Trump also warned that Oman must ”behave” or face serious consequences, remarks that quickly drew international attention. The comments underscored Washington's determination to prevent any country from gaining control over one of the world's most critical energy corridors. Why Are Oil Prices Still Headed for a Weekly Loss? Despite Thursday's rebound, both Brent and WTI remain on track for a second consecutive weekly decline. Why aren't prices rising more aggressively? The answer lies in expectations. Many traders still believe the United States and Iran will eventually reach some form of agreement. A successful deal could reduce tensions, reopen the Strait of Hormuz, and restore confidence in global energy flows. Trump has continued to push for a negotiated settlement, though progress remains slow. He recently accused Iran of attempting to delay discussions until after the US midterm elections. At the same time, not everyone in Washington supports a ceasefire. Some Republican lawmakers have criticized reports of a potential 60-day truce, arguing that it could undermine military gains achieved during the conflict. For now, the oil market sits between two powerful forces: immediate supply fears and longer-term hopes for peace. Which factor wins? That question will likely determine the next major move for Brent and WTI crude prices.