Crude Oil Prices Slip on Hopes for Strait of Hormuz Reopening

Crude oil prices fell to a one and a half week low on Wednesday as tensions in the Middle East eased. The October WTI crude oil contract closed down by 0.16% at -0.13, while the October RBOB gasoline contract rose by 1.05% at +0.0309.

The decrease in prices came after Iran and Oman discussed a potential deal to resume shipping through the Strait of Hormuz. The two countries agreed to establish a 'temporary joint maritime corridor' aimed at resuming transit through the strait, with further talks planned to negotiate a new permanent route within 30 to 60 days.

Crude prices have dropped by over 8% this week on signs of easing tensions and larger supplies moving through the Strait of Hormuz. The US State Department has also announced plans to send diplomats back to embassies in the Middle East that were evacuated before and during the war with Iran, suggesting a reduced likelihood of all-out hostilities.