Hormuz Tensions Fuel Oil Price Rise Amid Fragile Diplomacy

Oil prices have risen as tensions over the Strait of Hormuz continue to simmer. Iranian officials have linked any reopening of the waterway to a broader political settlement with Washington, leaving traders wary of a fragile deal.

The disruption has slashed tanker traffic and sustained a geopolitical premium in crude, even as Asian equities climbed on hopes of easier US monetary policy.

Brent crude, the global benchmark, moved higher after Iranian officials tied the waterway's reopening to sanctions relief and payment of war reparations.

Market participants are not just reacting to the lack of progress but also weighing the possibility that any deal could unravel quickly.