Oil futures climbed in early Asian trading as markets anticipated a technical rebound following consecutive overnight losses. The upward movement comes after President Trump indicated the U.S. is nearing a peace agreement with Iran, potentially reopening the Strait of Hormuz shipping lane, according to CBA analyst Vivek Dhar.

Front-month WTI crude oil futures rose 0.9% to $99.12 per barrel, while Brent crude futures increased 0.6% to $105.64 a barrel. The technical recovery suggests traders are positioning for short-term price gains despite ongoing market uncertainties.

CBA analysts caution that risks remain tilted downward largely due to elevated net long positions in oil and refined products. The market continues to balance between immediate technical indicators and longer-term geopolitical factors affecting global energy supplies.