Oil prices rebound after traders assess specifics of a proposed Iran-Oman agreement on the Strait of Hormuz.
West Texas Intermediate crude oil climbed nearly 2.8% to $76.50 per barrel on Thursday. The gain followed a reassessment of a proposed Iran-Oman agreement regarding the Strait of Hormuz, which tempered earlier optimism about potential increases in oil supply flows.
Prior to the rebound, WTI had faced downward pressure amid expectations that the deal could ease regional tensions and boost output. Analysts noted that details of the agreement suggested limited immediate impact on oil transit through the critical chokepoint.
Markets reacted swiftly to the news, with traders adjusting positions based on the perceived reduction in near-term supply risks.