Diplomatic Efforts Fail to Fully Ease Oil Price Squeeze

Oil prices took a breather on Friday after reports of diplomatic talks to keep shipping moving through the Strait of Hormuz. Despite this, Brent and WTI were still on track for their first $100-plus week since mid-May.

The recent string of attacks near major Middle East sea lanes had driven up oil's 'risk premium', a price traders pay when they fear supply disruption. Foreign ministers are discussing a temporary agreement with Iran to manage traffic through Hormuz, a key chokepoint for global crude shipments.

Analysts say that despite the diplomatic efforts, meaningful volumes of oil are still flowing below pre-conflict levels. Any hit to ports, pipelines, or refineries would have a bigger impact than brief delays.