Brent Oil Holds Firm Amid Hormuz Tensions

Brent oil prices held firm as tensions rose over the Strait of Hormuz, which has been disrupted due to escalating conflict between Iran and the United States. The US-Iran ceasefire agreement expired on Monday, but negotiations to end the conflict remain deadlocked.

The market is closely watching developments in the region, with Brent trading 32.60% above its price a year ago and 1.02% lower over the past month. Despite the disruption, Middle Eastern producers have been covertly moving millions of barrels through the waterway, limiting further price gains.

A key factor is the bilateral track between Iran and Oman, which could lead to an agreement on managing the Strait independent of US-Iran negotiations. The United States is not participating in these talks, but they represent a potential pathway for partial flow restoration.