Oil prices fluctuate as US-Iran hostilities persist alongside diplomatic backchannel reports

Brent and WTI crude prices are experiencing volatility as the tenth consecutive day of US-Iran hostilities in the Persian Gulf offsets potential de-escalation signals. While market participants are pricing in a risk premium due to the ongoing kinetic activity, reports of active diplomatic efforts are tempering upward price momentum. The sustainability of this price ceiling remains uncertain pending concrete outcomes from the reported negotiations.