Oil clawed back some of its biggest drop in almost two weeks as traders weighed whether a possible cease-fire in the Middle East will help soothe political tensions in the region.

West Texas Intermediate traded slightly higher near US$83. The gap between Israel and Hamas on an agreement to release hostages has narrowed in recent weeks and a deal was close, according to two people familiar with the deliberations.

Crude prices endured a rocky April after surging to its highest since October following Iran’s unprecedented attack on Israel. Conflicts in the Middle East and Ukraine, as well as OPEC+ supply curbs, bolstered prices. But uncertainty over U.S. monetary policy and softness in some fuel markets like diesel are countering those bullish factors.

U.S. Secretary of State Antony Blinken, on an ongoing visit to the Middle East, urged leaders of the Hamas militant group — designated a terrorist organization by the U.S. and the European Union — to quickly reach a decision on Israeli conditions for a cease-fire.

“We’ve already seen crude ease a bit on anticipation of a rapprochement, but prices may now remain rangebound until the outcome of the latest push for a truce is known,” said Vandana Hari, founder of Vanda Insights in Singapore.

Prices:

• Brent for July added 0.3 per cent to $87.46 a barrel.
• WTI added 0.3 per cent to $82.86 a barrel.