Texas oil rises 2.75% to $77.29 amid Strait of Hormuz deal hopes

Oil prices saw a notable increase, with Texas Intermediate (WTI) climbing 2.75% to settle at $77.29 per barrel. This rise is largely attributed to investor anticipation of a potential agreement between the United States and Iran concerning the Strait of Hormuz, a vital chokepoint for global crude oil transport.

Futures contracts for WTI crude for September delivery added $2.07 from the previous close. The oil market is keenly observing the diplomatic exchanges between Washington and Tehran. The US government recently suggested that an agreement to reopen the Strait of Hormuz, through which approximately 20% of the world's crude oil transited before regional conflicts, was nearing completion.

Despite US Treasury Secretary Scott Bessent's assertion that a deal would be finalized this week, Iran has indicated it is still reviewing messages from the US. Tehran is seeking assurances before deciding whether to resume negotiations. In parallel, Iran has announced a separate agreement with Oman to open a new route and is drafting legislation to regulate traffic in the Strait, potentially imposing restrictions on certain vessels.

This development comes as market participants weigh the geopolitical implications for oil supply. The situation highlights the delicate balance of international relations and its direct impact on energy markets.