US-Iran Diplomacy and Hormuz Uncertainty Shape Oil Price Outlook
Oil prices are expected to experience a mixed week due to shifting supply concerns and diplomatic efforts. The recent recovery in Saudi crude exports and renewed US-Iran talks have eased some supply worries, but uncertainty over the Strait of Hormuz's reopening remains.
International benchmark Brent crude futures traded at $105.36 per barrel on Friday, up 1.4% from last week's close. However, US benchmark West Texas Intermediate (WTI) crude futures for November delivery traded at $92.86 per barrel, down around 3.4% from a week earlier.
The recovery in Saudi exports helped to ease some supply concerns, but oil flows from the Middle East remain below normal levels. Meanwhile, diplomatic efforts between the US and Iran have limited the upward pressure on prices.