Diplomacy drives oil market movements

Growing expectations of progress in peace talks had triggered a sharp decline in oil prices during the previous trading session. With Brent crude trading around $105 per barrel, the security of regional energy supplies and shipping risks in the Strait of Hormuz continue to play a decisive role in market pricing.

A positive outcome from diplomatic negotiations could ease concerns over potential disruptions to oil supplies. However, renewed fighting or attacks on energy infrastructure could place upward pressure on prices. Oil price movements also have significant implications for energy-importing countries and the global inflation outlook. Investors are closely monitoring diplomatic statements, OPEC+ production policies, and trends in global oil demand.