Oil prices remained relatively stable today amid a cautious backdrop and uncertainty over developments regarding the status of the Strait of Hormuz.
The lack of tangible progress toward a broader agreement continues to support prices, while persistent disruptions in the waterway are reinforcing concerns that energy flows from the Middle East could remain limited for an extended period.
Even though isolated tanker movements have resumed, shipping activity remains far below normal levels, leaving the physical market tight.
The market is expected to experience a deficit this year and continued pressure on oil stockpiles, which could leave prices on an upward bias.
Looking ahead, oil markets are likely to remain highly sensitive to diplomatic developments and the evolution of shipping conditions in the Strait of Hormuz. While any meaningful breakthrough could create downward pressure on prices, the normalisation of maritime traffic could take some time. Meanwhile, attention could turn to the meeting between US President Donald Trump and Chinese President Xi Jinping for potential signs of progress toward easing tensions surrounding Iran.
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