Oil Markets Waver as Hormuz Reopens Under Fragile Peace

West Texas Intermediate futures edged up 1.0% to $77.34 a barrel, while Brent crude slipped 0.1% to $79.75. Despite the reopening of the waterway, both benchmarks remain on track for weekly losses exceeding 8%. John Oh, an economist at the Commonwealth Bank of Australia, warned that pre-war maritime volumes are unlikely to return immediately. Beyond the physical threat of sea mines, market participants remain wary of Iran’s future role in regional energy transit and the potential imposition of new toll fees.

Broader Asian equities mirrored the volatility in energy markets. While South Korea’s Kospi retreated 0.3% from record highs, it maintained a strong weekly gain of over 11%, buoyed by a rally in chip stocks following reports of a collaboration between Apple and Intel. Japan’s Nikkei also dipped 0.3%, yet holds a 7% gain for the week, while India’s Sensex faced a sharper 0.8% decline. Markets in China, Hong Kong, and Taiwan remained closed for the session.