Brent crude futures have climbed back to their highest levels since early July, reversing a sharp sell-off that had taken hold earlier in the week.
The rebound comes after US Secretary of State Marco Rubio stated that the Strait of Hormuz remains a contentious issue in negotiations with Iran, effectively dampening market expectations for an imminent diplomatic breakthrough.
Brent crude had previously stabilized around $72, but the renewed uncertainty has pushed prices higher, reflecting the market’s sensitivity to any signal that peace talks may be stalling or failing.
CNBC reported that the remarks have reignited concerns over potential shipping disruptions in one of the world’s most critical energy chokepoints.
The price action marks a significant shift from Monday’s trading, when oil prices fell sharply as traders rapidly discounted the prospect of a US-Iran ceasefire following reports that President Donald Trump was preparing to announce a formal agreement.
That optimism has since evaporated, with markets repricing the risk of continued geopolitical tension.
Brent crude had previously stabilized around $72, but the renewed uncertainty has pushed prices higher, reflecting the market’s sensitivity to any signal that peace talks may be stalling or failing.