Oil prices edged higher after falling to their lowest levels in three months, as investors waited for more details on the proposed US-Iran peace agreement and what it could mean for global oil supplies.
Both Brent crude and West Texas Intermediate (WTI) recovered slightly after suffering sharp losses earlier in the week. The sell-off came after the United States and Iran announced a preliminary agreement that could reopen the Strait of Hormuz, a vital shipping route that carries about 20% of the world’s oil trade.
While the prospect of increased oil flows has eased supply concerns, traders remain cautious. Markets are still waiting for details on when the agreement will take effect and how quickly shipping through the Strait of Hormuz can fully resume.
Several factors remain in focus:
- Implementation of the US-Iran agreement
- The pace of oil exports returning to normal
- Shipping activity through the Strait of Hormuz
- Global demand and supply expectations
Analysts note that geopolitical risk has fallen significantly, but uncertainty has not disappeared. Shipping data has yet to show a meaningful increase in tanker traffic, suggesting it could take time before global energy markets fully normalize.
For now, oil prices are caught between improving geopolitical sentiment and uncertainty over how quickly additional supply can reach the market, leaving investors closely watching the next steps in the US-Iran negotiations.
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