Oil Prices Hold Near $94 as Hormuz Attacks Offset Peace Hopes

Oil prices have fallen about 20% from their late-October peak of $118 per barrel, yet Brent crude remains near $94 as hopes for Middle East peace are tempered by ongoing attacks in the Strait of Hormuz and U.S. President Donald Trump's statement that Washington does not need a deal with Iran. Crude flows through the Strait of Hormuz have rebounded to near pre-war levels, but shipping costs remain sharply elevated, with 37 attacks on vessels in October and at least 10 more in early November. Insurance premiums and tanker rates keep the cost of moving a barrel from the Gulf to Asia more than five times higher than before the war. Iran's top negotiator said navigation through the Strait of Hormuz will never return to pre-war conditions, while Gulf producers are developing alternative routes. The market faces a high floor under prices until producers and buyers adapt to changed shipping conditions or a U.S.-Iran deal emerges.