Oil Prices Volatile Amid U.S.-Iran Negotiations 📉

• Global Market Impact: Front-month Brent Crude futures dipped 1.8% to $99.45 per barrel, while WTI fell 2% to $93.18. This follows a volatile session where prices previously crashed by 7% due to shifting expectations of a diplomatic breakthrough. • Geopolitical Developments: Markets are reacting to a U.S. proposal for a memorandum aimed at a gradual reopening of the Strait of Hormuz and lifting port blockades. However, Iranian officials indicate major sticking points remain, specifically regarding their nuclear program. • Supply Constraints: Despite the price dip, the market remains tight. U.S. crude inventories are depleting as global buyers increasingly rely on American barrels to offset disrupted Middle Eastern supply. • Sri Lankan Context: As an oil-importing nation, continued volatility in global energy prices and the status of the Strait of Hormuz remain critical factors for Sri Lanka's energy security, transport costs, and foreign exchange reserves.