Hormuz Optimism May Be Misplaced as Oil Prices Continue Slide

Oil prices continued their decline for a third session on Wednesday, despite increased bets that diplomacy would reopen the Strait of Hormuz.

Brent crude fell 1.2% to $78.44 a barrel by 3:30 am GMT, while West Texas Intermediate dropped 1.4% to $74.70.

The market's optimism about safer shipping and recovering exports seems premature, as tanker traffic remains depressed and another vessel was attacked near Oman on Tuesday.

US Treasury Secretary Scott Bessent said an agreement to reopen Hormuz could arrive by Wednesday, but ING strategists warn that the market may be 'getting a bit ahead of itself'.