Iran-Oman Talks Spark Cautious Optimism in Oil Markets

Oil prices have stabilized as market participants remain cautious about the potential impact of talks between Iran and Oman on global supply chains.

A proposed deal would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a critical chokepoint for oil exports. The Strait handles around one-fifth of global daily oil and liquefied natural gas supplies.

While some analysts believe that a sustained increase in volumes is needed to alleviate supply risks, others warn that even if a deal is reached, it may be fragile and subject to interference from third parties.