Hormuz Uncertainty Sends Oil Prices on Wild Ride

Ongoing negotiations over control of the Strait of Hormuz have led to oil price uncertainty. Brent crude futures settled at $83.55 a barrel, gaining $1.06 or 1.3%, while West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents or 1.15%. This week's signals on a potential deal have sent a roller-coaster ride in market sentiment.

The Strait of Hormuz is a key shipping artery through which roughly a fifth of the world's oil and liquefied natural gas passes. Iran reviewed a bill to ban U.S.-flagged vessels from the strait, but an agreement between Iran and Oman on the route ships would take through the strait has been reached.

The market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari of Vanda Insights. Analysts also say that this week's developments have signalled that hostilities between Iran and the U.S. are not yet over.