Oil prices rebound from 2-month lows amid Strait of Hormuz tensions

Oil prices bounced back from their lowest levels in two months Wednesday, as geopolitical risks in one of the world's most critical shipping lanes countered broader market sentiment around potential peace negotiations.

Brent crude futures gained 71 cents to trade at $92.20 per barrel, representing a 0.78% increase. US West Texas Intermediate crude rose 49 cents to $86.53 per barrel, up 0.57% in morning trading.

The recovery reflects a familiar market dynamic where hopes for diplomatic resolution clash with security concerns affecting global energy supplies. The Strait of Hormuz, through which roughly one-fifth of the world's oil passes, remains vulnerable to disruptions despite ongoing truce discussions in the region.

For Indian energy consumers and refineries, the price recovery underscores persistent volatility in crude markets. The nation's significant reliance on oil imports means that price swings in international markets directly impact domestic fuel costs and inflation pressures.

Market participants continue to weigh the competing forces of supply-side risks against demand concerns and macroeconomic headwinds. Crude prices remain substantially below levels seen earlier in the year, but Wednesday's gains suggest that security concerns remain a key pricing factor.