Hormuz Hopes Lift Oil Prices as Iran-Oman Talks Resume

Oil prices plummeted on Wednesday as renewed talks between Iran and Oman raised hopes that shipping restrictions through the Strait of Hormuz could ease.

The Brent crude oil price fell $2.30 or 2.6% to $86.28 a barrel, its lowest level since August 13, while U.S. West Texas Intermediate crude dropped $2.08 or 2.5% to $80.29 a barrel, reaching its lowest point since August 10.

The declines extended Tuesday's selloff, when both crude benchmarks fell more than 3%, as traders reduced some of the geopolitical risk premium built into oil prices.

The market sentiment improved after Iran resumed discussions with Oman over arrangements for managing commercial navigation through the Strait of Hormuz, a critical route for global energy supplies.