Oil Prices Mixed as Investors Weigh Strait of Hormuz Reopening Hopes

Oil prices were mixed on Wednesday as investors weighed revived expectations of a de-escalation in US-Iran hostilities. The Strait of Hormuz, a key waterway for global oil trade, has been closed due to tensions between the two countries. Brent crude futures settled up 9 cents, or 0.11%, at $79.45 a barrel, while U.S. West Texas Intermediate futures fell 55 cents, or 0.73%, to $75.22.

The market remained optimistic but cautious, said Phil Flynn, senior analyst with Price Futures Group. 'This agreement seems as tenuous as past agreements, and as we know, none of those have held up for very long.' Reports of progress in efforts to end the war drove prices down 5% on Tuesday, with Brent closing below $80 a barrel for the first time since July 13.

A build in U.S. crude inventories, as refineries eased their processing, slightly pressured prices. Crude stockpiles rose by 2.5 million barrels to 407 million barrels last week, data from the Energy Information Administration showed on Wednesday. Analysts had expected a draw of 1.5 million barrels.