Oil Rises as US-Iran Resume Peace Talks, Strait of Hormuz Risks Persist

Crude oil prices rose as the United States and Iran agreed to halt attacks and resume peace talks in Doha, reigniting hopes for a full reopening of the Strait of Hormuz. WTI crude settled 2.2% higher at $70.75 per barrel, while Brent gained 1.6% to $73.15.

Despite the diplomatic progress, tanker traffic through the Strait of Hormuz remains below normal following recent attacks, keeping supply risks elevated. Iran stated it will continue plans to manage maritime traffic through the strategic waterway, adding uncertainty to the normalization process.

Traders are closely monitoring shipping flows, insurance costs, and supply chain developments. Most of oil's wartime risk premium has been erased as diplomatic efforts gain momentum, but potential Russian diesel export restrictions could tighten global fuel supplies and support prices.