Negotiations over shipping routes through the Strait of Hormuz remain unresolved, keeping geopolitical risks in oil markets despite partial de-escalation.
Brent oil rebounded from midweek lows but closed last week sharply lower as markets priced a partial easing of Middle East tensions. The decline followed progress in talks between Iran and Oman over a new shipping framework for the Strait of Hormuz, though details remain uncertain.
Iran has tied any lasting agreement to broader demands, including US sanctions relief and security guarantees. While Oman described talks as nearing completion, Tehran emphasized that a technical deal on shipping routes would not fully reopen the waterway. Markets initially reacted with optimism before skepticism emerged over US acceptance of the terms.
The appointment of hardline official Mohsen Rezaee to Iran’s Supreme National Security Council adds complexity to negotiations. Investors remain cautious as geopolitical risks persist despite recent de-escalation signals.