Oil prices settle 1% lower in volatile trading as US weighs Hormuz escort return

Global oil prices ended about 1% lower after a volatile trading session, as markets reacted to reports that the United States is weighing a resumption of military escorts for commercial tankers passing through the strategic Strait of Hormuz.

Brent crude and West Texas Intermediate (WTI) swung sharply during the session before settling lower, reflecting investor uncertainty over the direction of U.S.–Iran tensions and the future of shipping security in the Gulf region.

The volatility came after reports that Washington is reassessing its maritime security posture in response to ongoing instability and intermittent threats to commercial shipping routes. The Strait of Hormuz, through which nearly one-fifth of global oil supply flows, remains a key flashpoint in global energy markets.

Earlier in the week, oil prices had briefly fallen on expectations of easing tensions and possible diplomatic progress between Washington and Tehran. However, renewed uncertainty over naval protection plans and the fragile ceasefire framework quickly reversed market sentiment, keeping prices in a wide trading range.

Analysts say the market is being driven less by fundamentals and more by geopolitical risk premiums, with traders reacting to every signal regarding military deployment, ceasefire negotiations, and shipping safety in the Gulf.

Despite the decline in prices, energy markets remain highly sensitive, with any escalation or breakdown in talks between the United States and Iran expected to trigger fresh volatility in crude oil benchmarks