Oil prices rebounded after a 7% dip, with West Texas Intermediate hovering near $96 and Brent closing above $101. The move follows a U.S. memorandum that could pave the way for the gradual reopening of the Strait of Hormuz, a strategic chokepoint in Middle East oil supplies.

Washington’s one‑page proposal signals a shift in diplomatic strategy, potentially easing tensions that have kept shipping lanes restricted. Investors watching the Strait’s status see a direct impact on global supply curves and refinery margins, making the memorandum a focal point for market sentiment.

Iran is expected to reply in the coming days, a decision that will either cement a new era of stability or prolong uncertainty. The outcome will shape the trajectory of energy pricing and the geopolitical balance in the region, directly affecting portfolio allocations and risk assessments for energy firms.