Oil Prices Swing Amid Revived Hopes for Hormuz De-escalation

Oil prices were mixed on Wednesday, with Brent crude futures settling up slightly and US West Texas Intermediate futures edging lower. The price movements came as investors weighed revived expectations of a de-escalation in US-Iran hostilities that could restore shipping traffic in the Strait of Hormuz and oil flows in the Middle East.

US President Donald Trump said there was an 'all-day negotiation' on Tuesday with Iran, characterizing the talks positively while also threatening to hit Tehran 'really hard' if a deal were not reached. However, Iran denied that peace talks were under way, stating instead that it had reached an understanding with Oman on how to manage the Strait of Hormuz.

Brent crude futures settled up 9 cents, or 0.11%, at US$79.45 a barrel, while US West Texas Intermediate futures fell 55 cents, or 0.73%, to US$75.22.