Oil held a four-day gain as traders monitored efforts to reach a deal that could help restore energy flows through the Strait of Hormuz. The waterway, a critical chokepoint for global oil shipments, has been at the center of supply concerns amid geopolitical tensions. Market participants are closely watching negotiations that may ease disruptions and stabilize crude prices. The recent rally also reflects broader risk appetite and supply data from major producers, though volatility remains high.

As of Aug. 12, crude benchmarks such as Brent and West Texas Intermediate have extended their upward streak, supported by optimism over potential diplomatic breakthroughs. Analysts note that any agreement could unlock the flow of millions of barrels per day through the strait, alleviating fears of a supply squeeze. However, uncertainties persist, and traders remain cautious ahead of inventory reports and policy signals from major economies.

The four-day gain marks a reversal from earlier losses and underscores the market's sensitivity to headline risks. Bloomberg Markets reports that the focus now shifts to the progress of talks and their impact on crude availability. With global demand showing mixed signals, the oil market is likely to remain reactive to both geopolitical developments and economic indicators in the coming weeks.