Oil prices have experienced significant volatility as the war between the U.S. and Iran enters its fourth month. Traders are currently weighing signals that a lasting agreement may be within reach against recent flare-ups in hostilities, leaving the market uncertain.
On Wednesday, U.S. crude oil prices fell, with some reports indicating a drop of about 6% and others more than 3%. This decline followed reports that Iran would restore traffic through the Strait of Hormuz as part of a framework deal with the U.S.
However, oil prices rose on Thursday after fresh U.S. military strikes in Iran renewed concerns over disruptions to commercial shipping through the Strait of Hormuz. These strikes occurred despite a ceasefire between Tehran and Washington as the two countries continue peace talks.
The ongoing disagreement over how to reopen the Strait of Hormuz has caused oil to edge higher. Additionally, the news of the fresh military strikes has left Asian shares hesitant, challenging investor optimism regarding a near-term peace deal.