The US and Iran are getting closer to an agreement to temporarily end hostilities, according to Pakistani officials, even as tensions flared in the Strait of Hormuz.

Tehran said negotiators were discussing a one-page plan to reopen Hormuz for a month, during which time they would try to reach a long-term deal.

But oil prices narrowly ticked up and stocks dipped on Thursday as skepticism resurfaced on the prospects for an agreement; the US and Iran reportedly traded fire in the strait again.

And even if a deal is reached, it could be a month before oil tanker traffic resumes in the waterway.

“Global markets should not mistake a ceasefire headline for a supply headline,” Rystad Energy’s chief oil analyst said.