Crude markets steady as easing tensions over Iran-US talks reduce supply disruption fears in the Middle East.
Oil prices recovered from a sharp selloff after reports emerged of a potential US proposal to Iran that could reopen the Strait of Hormuz. The initial drop reflected investor concerns over supply disruptions amid escalating geopolitical risks in the region.
Earlier declines followed heightened tensions, with markets pricing in risks to critical shipping lanes. The Strait of Hormuz handles about 20% of global oil trade, making it a key chokepoint for energy supplies.
The stabilization suggests traders are reassessing the likelihood of prolonged supply constraints as diplomatic efforts progress.