Brent Oil Hesitates at $100 as Iran's Hormuz Offer Fails to Convincing Markets
Brent oil briefly broke below $100 after Iran reportedly offered to reopen the Strait of Hormuz within seven days, but quickly recovered to around $99.55, indicating that markets are hesitant about the proposal.
The offer comes from an unnamed Iranian government official and is conditional on the US easing military pressure in the region. However, there has been no confirmation from Washington, and Tehran still rules out a direct meeting between President Trump and Iranian officials.
Despite the proposal, commercial traffic through the Hormuz Strait remains severely depressed, with hundreds of ships waiting to transit and war-risk insurance costs remaining high. This suggests that even if direct US-Iran strikes are paused, the market is still dealing with a damaged regional transport system.
The break below $100 has opened up the possibility of Brent falling to around $94.27, near the daily 55 EMA at $93.95. However, this would require fundamental confirmation from diplomatic channels, such as Washington acknowledging the proposal or scheduled negotiations.