Oil Prices Rebound Amid Hormuz Uncertainty and Diplomatic Efforts
Oil prices rebounded on Thursday after an initial decline, as traders weighed tentative diplomatic efforts involving Iran against the ongoing threat of disruptions to Middle East energy exports.
The Brent crude benchmark rose 0.81%, while West Texas Intermediate (WTI) gained 0.34%. The reversal highlighted how sensitive oil remains to developments around the Strait of Hormuz, where shipping has yet to return to normal.
Qatar's prime minister was due to travel to Iran on Thursday in an effort to restart negotiations aimed at ending the nearly six-month conflict involving Iran, the United States, and Israel. The initiative follows a pause in fighting, though the parties remain divided over control of the Strait of Hormuz.
The waterway carried roughly one-fifth of daily global oil and liquefied natural gas supplies before the conflict began in late February. Shipping activity increased slightly on Wednesday, but traffic remains constrained compared with normal conditions.
Iran and Oman are working on details of an arrangement concerning control of the strait. Progress toward a workable shipping agreement could allow more Gulf crude to reach international markets and reduce the geopolitical premium embedded in oil prices.