Hormuz Talks Weigh on Oil Prices as Disruptions Continue

Oil prices declined on Tuesday after reaching their highest levels in over a week. The drop came as signs of progress in talks between Oman and Iran on shipping through the Strait of Hormuz weighed against ongoing disruptions to Middle East energy flows.

Brent crude futures fell by $0.21, or 0.24%, to $87.51 per barrel, while US West Texas Intermediate crude futures dropped by $0.04, or 0.05%, to $82.09 per barrel.

Both benchmarks had reached their highest levels since July 31 earlier in the session, with Brent rising as high as $90.03 and WTI touching $84.61.

Fawad Razaqzada, an analyst at City Index and FOREX.com, stated that 'any signs of de-escalation or any signs of a deal are good news for risk assets and bad for oil, obviously. But it's all talk at the moment. It's all headlines. There's no meaningful progress.'