Hormuz Uncertainty Sends Crude Prices Higher Amid Geopolitical Tensions

Crude oil prices have risen as uncertainty persists over the reopening of the Strait of Hormuz, a strategically important shipping route. The price increase comes after a sharp decline last week due to expectations of a potential agreement between Iran and Oman.

Brent crude rose 0.7% to $84.2 a barrel, while U.S. West Texas Intermediate gained 0.5% to $78.6. Market participants remain cautious, waiting for concrete evidence that the waterway is reopening before unwinding the geopolitical risk premium.

The Strait of Hormuz is critical to global energy markets, with roughly one-fifth of the world's oil having moved through it before the conflict. Any prolonged disruption could tighten supplies and keep crude prices elevated.