WTI and Brent Prices Stagnate Amid Hormuz Strait Uncertainty

The WTI and Brent oil prices are struggling to recover from their recent slump, as the market awaits a temporary deal regarding the Hormuz Strait. The current situation is causing concern among traders, with some indicating that the futures market has priced in a reopening of the strait, while others believe a conflict is still on.

The number of vessels passing through the Hormuz Strait has decreased significantly, with only 33 ships recorded this week, down from 50 last week. This reduction in traffic is contributing to the uncertainty surrounding the situation.

The recent drop in oil prices was significant, with crude falling nearly 10% from Monday to Thursday. However, when it became clear that Iran's demands for shipping control, transit fees, and vessel bans were not as extreme as feared, prices began to recover early on Friday.