Hormuz Relief

The Strait of Hormuz handles nearly a fifth of global oil and gas flows. The mere possibility of a diplomatic breakthrough has wiped out a significant portion of the 'logistical premium' that had kept Brent above $110.

Market Volatility

The International Energy Agency warned that despite the diplomatic progress, the market remains in a highly volatile phase. Brent is expected to fluctuate wildly as traders assess the actual timeline for maritime normalization.