TOKYO, May 7 (Reuters) – U.S. crude futures rose about $1 in early trade on Thursday, rebounding from the previous day’s losses, as investors assessed prospects for a Middle East peace deal.
U.S. West Texas Intermediate crude futures gained 80 cents, or 0.8%, to $95.88 a barrel as of 2223 GMT after climbing as high as $96.33 earlier in the session.
The benchmark contract slid about 7% on Wednesday on optimism about a possible end to the war in the Middle East, with reports the United States and Iran were nearing an initial peace deal.
A source from mediator Pakistan and another source briefed on the mediation said an agreement was close on a one-page memorandum that would formally end the conflict.
Iran said on Wednesday it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.
An Iranian foreign ministry spokesperson cited by Iran’s ISNA news agency said Tehran would convey its response. U.S. President Donald Trump said he believed Iran wanted an agreement.
(Reporting by Yuka Obayashi; Editing by Cynthia Osterman)
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