Oil Prices Fluctuate Amid Strait of Hormuz Tensions and Russia-Ukraine Conflict

Oil prices fluctuated wildly on Wednesday as traders weighed progress in diplomatic efforts to restore shipping through the Strait of Hormuz against new risks to global supplies.

Brent crude settled below $88 a barrel after trading between gains and losses, while WTI crude remained little changed around $82 a barrel.

Oman and Iran are pushing for a broader agreement on managing the critical waterway, but Iranian officials have indicated that an agreement on navigation issues does not mean the strait will reopen immediately.

Reports of Russian President Putin's plans to escalate military operations in Ukraine pushed oil prices higher during the session, as tight fuel markets and prevented Moscow from diverting crude oil for export.