Oil Prices Rise on Iran-Oman Talks Amid Supply Tensions

Oil prices are gaining traction as investors speculate on the outcome of Iran-Oman talks and their potential impact on US-Iran conflict resolution. The Strait of Hormuz, a critical shipping route through which one-fifth of global daily oil and liquefied natural gas supplies pass, is at the center of these negotiations.

A proposed deal between Iran and Oman would grant Tehran control over ships entering the Gulf via the Strait of Hormuz, according to a senior Iranian source and two regional officials. This concession marks one of the biggest compromises yet made by Oman in an attempt to end the US-Iran conflict.

'Until we see sustained, verifiable increases in volumes, the market will continue to price in a degree of supply risk,' said Tim Waterer, chief market analyst at KCM Trade. The Brent crude futures have gained 83 cents, or 1.04%, to $80.28 a barrel by 1158 GMT, while U.S. West Texas Intermediate futures added 61 cents, or 0.81%, to $75.83.