Brent crude slipped to $88.77 per barrel, while West Texas Intermediate settled at $82.31. The cooling sentiment follows reports of a proposed ten-day truce aimed at reviving the June agreement. However, skepticism remains high; an unnamed senior Iranian official confirmed receipt of the proposal but offered no signal of Tehran’s willingness to concede, and neither side shows signs of abandoning their current military posture.

Simultaneously, the supply chain remains fragile. Tanker traffic through the Strait of Hormuz has slowed to a crawl, and Houthi threats to blockade Saudi Arabian shipping lanes via the Red Sea have added a new layer of volatility. ING analysts Warren Patterson and Ewa Manthey noted that Saudi Arabia currently exports 4.6 million barrels daily from the port of Yanbu. They warned that any successful blockade would force tankers to divert around Africa, drastically increasing voyage times and shipping costs. For now, the market appears to view the blockade threat as unlikely to succeed, betting instead on the possibility of a diplomatic breakthrough.