Oil Prices Rebound Ahead of Potential Strait of Hormuz Deal

The price of oil has fluctuated significantly in recent weeks, with West Texas Intermediate (WTI) trading at $74.69 and Brent at $79.08 as Iran-Oman talks near a deal to reopen the Strait of Hormuz.

The week's damage was front-loaded and severe, with WTI losing 11% across its first three sessions and Brent shedding around 5% in two consecutive days before rebounding on reports of a missile attack on a Saudi vessel.

Despite this, prices have largely returned to levels seen when the interim peace agreement was signed on June 17, with every dollar of the escalation premium unwound. The market is now pricing a near-complete resolution of the five-month supply shock that has not actually resolved.