WTI crude gave up earlier gains after reports suggested Iran and Oman are moving closer to restarting talks over the Strait of Hormuz, reducing immediate worries about supply disruptions in one of the world’s most important oil transit routes. The prospect of de-escalation led traders to unwind geopolitical risk premiums that had supported prices earlier in the session, while Brent also retreated as the market reassessed regional supply risk. The strait handles about 20% of global oil consumption, making it a critical chokepoint for energy markets. Analysts say oil remains highly sensitive to developments around Tehran and Muscat because any breakdown in diplomacy could quickly revive fears of a supply squeeze, while concrete progress in talks could add further downside pressure to crude prices.