Hormuz Diplomacy Eases Brent Crude Supply Risks, Downside Looms

Brent crude (XBR) is trading at $85.27 after a modest slip in the previous session, remaining below its key moving averages on the daily chart.

The reduced supply risk for Brent crude reflects improved shipping access at the Strait of Hormuz and diplomatic progress involving Iran and Oman, with traders reassessing potential constraints as diplomatic initiatives ease concerns over disruptions in key physical supply routes.

Brent trades below major technical resistance, projected to trade within a volatility band between $83.45 and $87.07, with elevated downside risk and a very low probability of an upward move.