Crude oil benchmarks stabilized on Tuesday as increased tanker movements through the Strait of Hormuz signaled a reduction in immediate supply disruption fears.
The resumption of traffic follows reports of early progress in diplomatic discussions between the United States and Iran aimed at ending the ongoing conflict.
Brent crude closed above US$77 a barrel, while West Texas Intermediate (WTI) traded near US$73, having fallen less than 1% in the previous session.
Brent crude closed above US$77 a barrel, while West Texas Intermediate (WTI) traded near US$73, having fallen less than 1% in the previous session.
The price action reflects a market recalibration where the premium for geopolitical risk is being pared back, though not entirely eliminated, as traders assess the durability of the diplomatic thaw.
The Strait of Hormuz remains a critical chokepoint for global energy flows, and any sustained improvement in transit security directly impacts freight rates and insurance premiums for tankers operating in the region.
Previous tensions had driven up shipping costs and created volatility in energy markets, with investors closely monitoring naval movements and diplomatic statements for signs of escalation or de-escalation.