Dubai: Oil was steady after its first decline this week on optimism that talks between the US and Iran will see energy flows resume through the Strait of Hormuz. West Texas Intermediate traded below US$93 a barrel, after sliding more than 3% on Thursday, while Brent closed near US$95. The US oil benchmark is still up more than 6% for the week.
According to Emirates News Agency, the potential for resumed energy flows through the Strait of Hormuz, a critical chokepoint for global oil shipments, has injected a sense of optimism into the market. This has helped stabilize prices after a notable decline earlier in the week. The ongoing negotiations between the US and Iran are viewed as pivotal in determining the future trajectory of oil prices.
The recent movements in oil prices highlight the volatility and sensitivity of the market to geopolitical developments. The discussions between the US and Iran are closely watched by market participants, given their potential impact on global oil supply dynamics. The Strait of Hormuz remains a strategic passage for oil exports, and any resolution in the talks could significantly influence energy flows and pricing.