Morning trade saw U.S. crude inch up while European benchmarks slipped, as traders digested Iran’s latest overture on the Strait of Hormuz. Tehran has signaled willingness to cease attacks if Washington ends the war and lifts the sanctions blockading its ports, a move that could unclog a key oil chokepoint if accepted. Analysts warn volatility could persist until talks progress.

Front‑month contracts reflected the tug‑of‑war, with WTI $96.70 a barrel gaining 0.3% and Brent $108.14 slipping 0.1%. Washington’s national‑security team, led by President Trump, expressed doubt that Tehran’s conditions are genuine, citing previous dead‑end negotiations. ANZ Research noted the back‑and‑forth signals little chance of an imminent cease‑fire. Energy traders remain cautious, trimming exposure to Middle‑East risk while monitoring diplomatic chatter for any shift.

With the proposal stalled, oil markets are likely to stay range‑bound, and any escalation in the Hormuz corridor could reignite price spikes. Shipping firms and refiners watch the diplomatic ledger closely, as a sudden reopening would lower freight premiums and ease tight global supply. For now, price differentials simply echo the political deadlock. Investors therefore keep a close eye on any official statement.