Global oil prices have fallen by over 8% this week as traders react to potential progress in negotiations between Iran and Oman regarding the reopening of the Strait of Hormuz.
The potential breakthrough in shipping routes has eased supply fears, causing Brent crude to retreat from recent highs as markets price in a reduction of geopolitical risk.
Despite the weekly decline, analysts warn that prices remain volatile, with supply risks still outweighing peace hopes if the diplomatic talks fail to secure a permanent shipping agreement.