Oil Swings as Optimism Over Iran Conflict Resolution Fades
Oil prices fluctuated as concerns resurfaced that a deal to end the war and reopen the vital Strait of Hormuz remains out of reach. Market sentiment shifted amid signs that the United States and Iran are still at odds over control of the crucial oil and natural gas transit route.
Brent crude, the global benchmark, traded near $100 per barrel, while West Texas Intermediate (WTI) hovered around $95 per barrel. Trading has been volatile this week as investors closely monitored developments surrounding potential peace negotiations between Washington and Tehran.
Reopening the Strait of Hormuz is seen as critical to easing what has been described as one of the largest energy supply disruptions in modern history. Before the war halted traffic, roughly one-fifth of global oil and liquefied natural gas flows passed through the strategic waterway. The United States is still awaiting Iran’s response to its proposal to reopen the strait and bring an end to the conflict.
Reports indicate that Washington may resume its operation to guide commercial vessels through the strait after previously pausing the effort amid resistance from allies. Earlier attempts to secure maritime passage were followed by renewed clashes, including exchanges of fire between U.S. and Iranian forces and attacks targeting the United Arab Emirates.
Although Brent previously plunged on renewed hopes of a diplomatic breakthrough, traders are now reassessing potential obstacles, including Iran’s reported new rules requiring vessels to apply for permission before transiting the strait. With a dual blockade still in place and shipping activity limited, oil prices are expected to remain highly sensitive to both diplomatic headlines and military developments in the region.
Source : Newsmaker.id
