Hormuz Hopes Spark Oil Price Plunge
Oil prices have taken a hit after renewed talks between Iran and Oman on navigating through the Strait of Hormuz raised hopes that the strategic waterway could reopen.
The Brent crude futures fell $2.30, or 2.6 percent, to $86.28 a barrel by 0447 GMT on Wednesday, while US West Texas Intermediate (WTI) crude dropped $2.08, or 2.53 percent, to $80.29 a barrel.
This comes after Iran and Oman held talks in recent weeks on managing vessel traffic through the strait, with the two countries agreeing on mine-clearance efforts.
The development has led analysts to attribute the market's reaction to hopes for progress in the Iran-Oman talks, as Mitsuru Muraishi, an analyst at Fujitomi Securities, said 'The market continues to react to developments surrounding navigation through the Strait of Hormuz.'