Hormuz Talks Weigh on Oil Markets Amid Ongoing Disruptions

Oil prices held steady near a one-week high on Tuesday as markets weighed signs of progress in talks between Oman and Iran over shipping through the Strait of Hormuz. The Strait is a critical waterway for global oil supplies, with about 20% of global oil passing through it before the start of the Iran war on February 28.

Talks between Oman and Iran are at an advanced stage, according to Qatar's foreign ministry spokesperson. However, Fawad Razaqzada, analyst at City Index and FOREX.com, cautioned that 'it's all talk at the moment' and that there is no meaningful progress yet.

Elsewhere in the Middle East, a suspected attack by Houthis on a small cargo vessel in the Bab el-Mandeb strait resulted in three crew members being killed. This is the first reported deaths from a Houthi strike on shipping since the Iran war began.

The disruption to oil flows continued with renewed violence in Libya's strategic city of Zawiya, which has once again disrupted the oil industry. In Europe, Ukraine's attacks on Russian energy infrastructure have also boosted global energy prices.