FX.co ★ Oil Steadies as Markets Assess Hormuz Developments

Crude oil hovered around $75 per barrel on Thursday after three straight sessions of declines, as investors weighed the implications of a proposed shipping arrangement through the Strait of Hormuz. Iran announced it had reached a temporary shipping agreement with Oman, while officials emphasized that it did not represent a full reopening of the strategic waterway.

At the same time, US officials continued to signal confidence that a deal with Iran was close, though investors remained wary about the durability of any long-term peace in the region. The UK Navy reported explosions near a tanker transiting the strait, and Iran-backed Houthi militants claimed responsibility for attacks on a Saudi oil tanker and issued threats against additional vessels in the Red Sea.

On the supply side, US crude inventories climbed from their lowest levels since 2018, and Saudi Aramco reduced the official selling price of its flagship crude for Asian buyers, underscoring expectations of improving regional supply conditions.