Brent crude futures climbed 24 cents, or 0.38%, to $78.15 a barrel, reversing an initial selloff as market sentiment stabilized around the Strait of Hormuz.
The modest recovery reflects a cautious recalibration by traders who are balancing tempered optimism over US-Iran peace negotiations against the tangible reality of slowed shipping flows through the strategic waterway.
While diplomatic channels remain open, the physical disruption to energy transit continues to underpin prices, preventing a deeper slide despite the absence of fresh escalation headlines.
This repricing follows a volatile session where oil initially dropped before bouncing back, highlighting the market's sensitivity to any shift in the geopolitical posture between Washington and Tehran.
The Strait of Hormuz remains a critical bottleneck for global energy supplies, and any further slowdown in transit volumes would likely reignite upward pressure on crude.
Diplomatic efforts are intensifying in parallel, with US officials traveling to Gulf capitals to advocate for the reopening of the Strait.