Oil prices rebound as traders monitor progress toward a US-Iran framework agreement and potential Strait of Hormuz reopening.
WTI crude trimmed losses to trade near $93 after hitting an overnight low of $89.40. The recovery follows optimism over US-Iran negotiations, which could ease tensions in the Strait of Hormuz, a critical oil transit route.
Prices gapped lower at the start of the week, dropping from $96 to below $94 on Monday. The shift came as markets priced in a potential deal, though details remain uncertain, including Iran’s conditions for reopening the strait.
Traders are cautious about a possible “sell the rumor, buy the fact” reaction if an agreement is announced. Iran’s willingness to clear mines and waive tolls may be temporary, with nuclear talks still pending.