Oil prices staged a late-session recovery on Friday as traders assessed a pending agreement between Iran and Oman designed to establish rules for transit through the Strait of Hormuz.
The development offers a potential de-escalation path for one of the world’s most critical energy chokepoints, providing a counterweight to the severe selling pressure that has dominated the week.
Despite the rebound, both Brent and WTI benchmarks remain on track for a weekly loss exceeding 9%, reflecting the depth of the recent selloff driven by fears of prolonged disruption.
Brent crude futures rose in the session, reversing some of the sharp declines seen earlier in the week.
Despite the rebound, both Brent and WTI benchmarks remain on track for a weekly loss exceeding 9%, reflecting the depth of the recent selloff driven by fears of prolonged disruption.
The market’s reaction underscores the sensitivity of energy flows to diplomatic progress in the region.
The proposed Iran-Oman accord aims to set clear parameters for shipping through the strait, addressing concerns raised by recent strikes on hostile targets and slowed vessel movements.