Hormuz Deal Hopes Lift Oil Prices, But Risk Premium Remains

Oil prices inched up on Thursday, but held onto most of their losses from earlier this week, as investors waited for news on a potential deal to restore shipping through the Strait of Hormuz.

The global oil benchmark, ticked up by 1.8% to $80.87 per barrel, while rose 1.3% to $76.19 per barrel. Both contracts remained on track for losses of more than 8% over the past one-week period.

Iran announced an agreement with Oman on the coordinates of a proposed shipping route through the Strait of Hormuz, but traders were cautious as the deal doesn't amount to a full reopening of the strait. Negotiations over cargo fees, inspections, and broader security arrangements are still unresolved.

U.S. President Donald Trump said Washington was holding talks with Tehran, and that he would 'see what happens' in the ongoing negotiations. Iran has publicly denied any peace talks with Washington were underway.