Oil prices slipped more than 8% over the past week, as traders placed bets on a possible agreement to reopen the Strait of Hormuz.
The decline was reflected across major benchmarks, with both Brent crude and U.S. West Texas Intermediate recording weekly losses exceeding 8%.
The Strait of Hormuz, a narrow waterway between Iran and Oman, carries roughly a fifth of global oil shipments, making its operational status a key driver of market sentiment.
Recent geopolitical friction in the region had raised fears of a closure, prompting earlier price spikes; the current slide suggests that the risk premium is receding.
Market participants said the prospect of a diplomatic deal to restore free passage is tempering demand for a risk premium, leading to the observed price drop.
If a reopening agreement is reached, analysts expect a modest easing of supply concerns, which could further support lower price levels.
Nevertheless, traders remain cautious, noting that any delay or breakdown in negotiations could quickly reverse the week's gains.
