Oil prices steadied after registering the steepest quarterly decline since the COVID‑19 pandemic, a move that calmed markets. Traders cited the resumption of diplomatic overtures between the U.S. and Iran as a key factor, noting that any de‑escalation could lift the risk premium on crude. The rebound also followed the reopening of tanker routes through the Strait of Hormuz in global markets and investor sentiment.

Analysts today note that the earlier plunge reflected concerns over sanctions, supply disruptions and heightened geopolitical tension. With vessels now navigating the narrow chokepoint, forward‑curve spreads narrowed, suggesting traders expect steadier supply balances in the coming weeks. The market’s reaction underscores how quickly sentiment can swing when diplomatic channels reopen, offering a brief reprieve for oil‑dependent economies.

While the significant price stabilization eases immediate pressure on refiners, the underlying volatility remains. Investors will watch upcoming talks for any indication that the largest quarterly drop was a one‑off event rather than a new baseline. For now, the global market treats the Hormuz traffic recovery as a positive supply signal, keeping crude benchmarks anchored near current levels.