Hormuz Talks Show Promise as Oil Prices Hold Steady
Oil prices remained relatively stable on Wednesday as negotiations between the U.S., Iran, and Oman aimed to manage ship traffic in the Strait of Hormuz progressed. According to regional sources, an interim agreement is being discussed, which would allow inbound ships to pass through Iran's territorial waters while outbound vessels would sail through Oman's waters with Tehran's coordination.
President Donald Trump stated that negotiations had gone on for a long time and 'it looks like things are very good.' Treasury Secretary Scott Bessent earlier predicted that a deal could be reached this week. The Strait of Hormuz is a critical waterway for oil, gas, fertilizer, and other industrial products.
Despite the ongoing negotiations, prices briefly surged after Iran's Houthi allies in Yemen claimed they had hit a Saudi tanker with a missile near the coast of Yanbu, a major port for Riyadh's crude oil exports. The U.S. and Iran signed a memorandum of understanding on June 17 to open Hormuz, but it quickly collapsed due to fighting over ship routes.