Crude oil benchmarks closed mixed on Wednesday, reflecting a market in holding pattern as investors await a formal agreement between Washington and Tehran to reopen the Strait of Hormuz.
The vital waterway, through which roughly a fifth of global oil consumption passes, remains the focal point of geopolitical risk pricing in energy markets.
Brent crude and West Texas Intermediate (WTI) showed little directional conviction in the session, oscillating around recent levels.
The lack of a clear catalyst has left traders cautious, balancing the potential for a swift de-escalation against the risk of prolonged disruption.
This pause follows a period of heightened volatility, where prices had previously spiked on fears of supply constraints before retreating on hopes of a diplomatic resolution.
The current standoff represents a continuation of the broader geopolitical narrative that has dominated energy markets in recent weeks.