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Diplomacy is offering the oil market some relief, but the Strait of Hormuz remains the real test.
Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on October 26 to prevent further military escalation. Oman is also reporting progress toward a temporary arrangement to restore freedom of navigation.
Yet Brent crude remains around $115 per barrel, showing how little confidence the market has in a quick return to normal supply conditions.
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