Oil edged lower in early Asian trade amid growing hopes of a new U.S.-Iran ceasefire that could ease lingering worries over supply disruptions in the Middle East, where a single port or corridor can affect global flows.

Mediators were actively working Monday to persuade the U.S. and Iran into a fresh ceasefire agreement. “Signs of progress toward a return to diplomatic talks offset renewed tensions in the Middle East over the weekend,” Konstantinos Chrysikos of Kudo.com said in an email, underscoring the optimism that a diplomatic thaw could stabilize the region.

Nevertheless, the situation in the Strait of Hormuz remained precarious. Navigation continues to be severely restricted, keeping the physical market tight. Front‑month WTI crude oil futures slipped 0.1% to $83.17 per barrel, reflecting traders’ caution as they weigh both political signals and concrete shipping constraints. This has led to a tightening of inventory reports and cautious positioning by hedgers.

With diplomatic developments still unfolding, market participants remain vigilant, watching for any breakthrough that might lift the supply‑disruption narrative while managing the persistent risk of restricted maritime traffic. Analysts suggest that a lasting ceasefire could reduce volatility and support a gradual rebound in oil prices, though short‑term uncertainty will likely persist.