Hormuz Hopes Send Oil Prices Sliding Below $80

Oil prices declined on Thursday as investors bet that progress between Iran and Oman could bring the Strait of Hormuz closer to reopening.

The agreement on the coordinates of a proposed shipping route through the strait and a joint statement are being finalized, with Tehran indicating that the arrangement would still depend on outside powers, particularly the US, not obstructing the process.

Nomura economist Yuki Takashima noted that progress in the talks had encouraged renewed selling in crude, as prices returned to levels seen around the June 17 interim agreement.

The stakes remain high, with the Strait of Hormuz carrying 20.9 million barrels a day in the first half of 2025, equal to about 20% of global petroleum consumption.