Oil prices rose and stocks were down slightly on Sunday as hopes for a diplomatic breakthrough in the standoff over the Strait of Hormuz were dashed. The market reaction followed reports that Iran and Oman had indicated progress toward an agreement last week, but no deal materialized.
Brent crude futures gained about 1.2% to trade near $82 per barrel, while West Texas Intermediate rose to around $78. The dip in global equities was led by energy and technology sectors, with major indices slipping less than 0.5%.
The standoff stems from Iran's threats to disrupt shipping through the Strait of Hormuz, a critical chokepoint for about 20% of global oil consumption. Tensions have escalated in recent weeks, prompting the U.S. to increase naval patrols in the region.
Analysts say the market remains sensitive to any news from the region. "Any sign of progress or escalation could move prices significantly," said a commodities strategist. Investors are also watching for potential impacts on global supply chains.
