Oil futures slipped Tuesday morning as traders bet that a resolution to reopen the Strait of Hormuz could materialize soon. WTI crude fell 1.7% to $87.40 a barrel while Brent dropped 1.7% to $92.12, pressured by expectations that increased oil traffic will resume through the critical waterway. Dennis Kissler of BOK Financial notes that while global crude supplies remain tight, fears of prolonged shortages are easing from price curves.

Market optimism centers on a potential U.S.-Iran conflict deal that analysts expect could be reached within days or weeks. However, Ajay Parmar of ICIS warns that even if agreement comes quickly, oil and petrochemical markets won't normalize until early next year. The logistics bottleneck at Persian Gulf loading terminals will create initial chaos as ships and producers rush to offload stored supplies simultaneously.

Across the Atlantic, SSE faces a near-term catalyst in the UK's upcoming Contracts for Difference auction round, AR8. The Scottish utility can bid for additional Berwick Bank phases, potentially securing strike prices similar to previous rounds. RBC Capital Markets analyst Alexander Wheeler estimates success in these renewable projects could deliver double-digit EPS compound annual growth beyond current guidance.

Shares in SSE edged 1.25% lower to 2,375 pence despite the positive long-term outlook, reflecting near-term caution in European utility stocks amid broader energy market volatility.