Oil Prices Teeter Amid Ongoing Iran Talks

Recent weeks have seen oil markets struggle to find direction as geopolitical risks have continued to weigh on prices. The U.S.-Iran peace deal and ceasefire agreement in mid-June led to a decline in WTI crude from around $85/bbl to below $70/bbl, as the conflict risk premium largely dissipated. However, attacks on shipping vessels in the Strait of Hormuz and Red Sea in mid-July pushed prices back above $90/bbl.

The current price range between $80-85/bbl is a result of ongoing negotiations between the U.S., Iran, and Oman to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent's comments that a deal could come 'today or tomorrow' have contributed to the recent market volatility.

Earnings are also in focus this week, but oil prices appear to be taking a backseat as markets await the outcome of the negotiations. With conflicting messages on the status of talks and fresh attacks in the strait, investor confidence has been tested.