Oil prices steady after strong China GDP; Iran peace talks in focus

Investing.com-- Oil prices reversed early losses to rise slightly in Asian trade on Thursday after stronger-than-expected first-quarter growth data from top importer China.

But crude was nursing steep losses this week, with any upside largely quashed by hopes of easing U.S.-Iran tensions and more ceasefire talks. 

Brent oil futures rose 0.1% to $95.06 a barrel by 22:48 ET (02:48 GMT), while West Texas Intermediate crude futures steadied at $88.06 a barrel. 

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China GDP reads stronger than expected in Q1

China’s economy grew more than expected in the first quarter of 2026, aided by strong export demand and as domestic consumption also picked up from years of underperformance.

GDP grew 5% year-on-year, at the upper end of Beijing’s annual target. 

The print helped spur some optimism over oil demand in the world’s largest crude importer, although a host of other readings showed economic momentum slowed towards the end of the first quarter. 

The outlook for China’s economy also remained uncertain in the face of the Iran war, especially given that Beijing imports much of its crude from Tehran. 

Oil prices nurse sharp losses on hopes of more Iran peace talks

Oil prices were nursing sharp losses this week as U.S. officials touted more peace talks with Iran, after dialogue over the weekend yielded few results. U.S. President Donald Trump said talks could take place in the coming days, and that an end to the war was close.  

But the U.S. also said it had completely enforced a naval blockade against Iran, a move that could complicate peace talks. An Al Jazeera report showed Iranian officials warning the U.S. against "provocations" in the Strait of Hormuz. 

Other reports showed some ships and oil tankers had passed through the Strait of Hormuz this week. Reuters also reported that Iran could consider allowing ships to sail freely through the Omani side of Hormuz without risk of attack, as part of a peace deal. 

A tenuous ceasefire between Washington and Tehran appeared to be holding as of early-Thursday, with no new reports of strikes since late last week. But the ceasefire is set to expire on April 21.

A host of reports on Wednesday showed the U.S. planned to send over 10,000 more troops to Iran, raising questions over a further escalation in the war. 

Oil had risen as high as $120/barrel since the onset of the Iran war, but struggled to hold gains amid a host of emergency reserve releases in major economies. This week, crude was also pressured by both the IEA and the OPEC warning of softer demand due to disruptions caused by the Iran war. 

The Strait of Hormuz remained a key point of focus in the conflict, with Iran having largely blocked the crossing since the onset of U.S. and Israeli hostilities in late-February. 

Washington has demanded a full reopening of the crossing as part of any ceasefire agreement.