Oil traffic through the Strait of Hormuz has recovered to nearly 80 percent of pre-war levels as Iran and the US negotiate to end seven months of hostilities, potentially weakening Iran's leverage in negotiations. Despite the recovery, tanker insurance costs remain elevated and flows are not yet secure, suggesting Iran's bargaining power is diminishing but not disappearing. Iran disputes assessments of lost control, claiming ongoing military operations in the strait.
Oil prices rose as negotiations over reopening the Strait of Hormuz stalled after President Trump rejected Iran's proposal to reopen the critical shipping route within seven days. The impasse raised concerns about potential supply disruptions, with Brent crude near $99.94 and WTI around $95.43 per barrel.