Oil Prices Swing as Strait of Hormuz Hopes Rekindle

Oil prices were mixed on Wednesday 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.

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

The market remained optimistic but cautious, with Phil Flynn, senior analyst with Price Futures Group, saying '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 per cent on Tuesday, with Brent closing below $80 a barrel for the first time since July 13.