Oil prices edge up as traders await US-Iran agreement on Strait of Hormuz

Oil prices moved higher on Wednesday as investors awaited a preliminary agreement between the United States and Iran that could lead to the reopening of the Strait of Hormuz for commercial traffic. Brent crude rose just over one percent, briefly trading above $80 a barrel before slipping back to $79, while U.S. West Texas Intermediate increased to around $77 before easing to $76.60.

The deal, expected to be signed on Friday, is said to include a 60-day cease-fire and the restoration of shipping through the strategic chokepoint, which previously carried about 20 percent of global crude flows. Prices have fallen from the wartime peak of roughly $120 per barrel recorded in late April, but remain above the pre-conflict range of $65-$75.

President Donald Trump, speaking at the G7 summit in France, said the negotiations were progressing and suggested oil prices could fall further once the Strait reopens. He also indicated that the United States would not contribute to a proposed $300 billion fund for Iran’s economic development.

"We have a very hot stock market, and we have a very low oil price. I think oil prices might get lower than where they were before the war," Trump told reporters.

Analysts noted that while the market showed restrained optimism, the lack of detailed terms kept price movements tentative.