WTI crude prices fluctuate amid Strait of Hormuz reopening talks

West Texas Intermediate (WTI) crude oil prices have seen recent volatility, closing at $78.18 per barrel following a 1.15% weekly increase, despite a broader weekly decline of 9.8%. Market sentiment is heavily influenced by ongoing negotiations regarding the reopening of the Strait of Hormuz, a critical waterway through which 20% of the world's crude supply previously passed.

U.S. President Donald Trump indicated he is "personally involved" in negotiations with Iran to reopen the strait, suggesting an agreement could be reached soon. While Iran and Oman have reportedly reached an agreement on a new shipping route, Iranian officials cautioned that an immediate reopening is unlikely as long as the U.S. naval blockade and security threats persist.

Regional instability remains a factor for energy markets, with reports of attacks on Saudi Arabian refineries and tankers in the Strait. Despite these tensions and recent price pullbacks, analysts from TD Securities suggest that "energy markets hold out hope for a deal," which continues to anchor sentiment amid tight global crude balances.