Oil prices experienced a 1.5% decline, settling above $94 a barrel, as traders reacted to renewed hopes for peace talks between the United States and Iran. These negotiations could lead to the resumption of energy flows through the crucial Strait of Hormuz, which connects the Persian Gulf to global markets. Despite this optimism, the Iranian government expressed skepticism about the negotiations' prospects. West Texas Intermediate (WTI) futures have risen 13% for the week, marking the largest increase since the initial surge following the conflict's outbreak in early March. Iran's Foreign Minister, Abbas Araghchi, is expected to present a new written response to a US proposal while in Pakistan, where US envoys are also scheduled to meet with Iranian officials. However, US President Donald Trump’s ongoing naval blockade of Iranian ports remains a significant hurdle, severely limiting Iranian crude exports. Analysts from Goldman Sachs suggest that even if the Strait of Hormuz reopens, it may take several months for oil production to normalize, leading to further tightness in global oil supplies.