Hormuz Tensions Ease, Oil Prices Drop for Fourth Session

Oil prices fell for a fourth consecutive session on Thursday as easing tensions around the Strait of Hormuz reduced immediate concerns over global energy supplies. The Brent crude price slipped towards $87 a barrel, extending its decline after Iran and Oman reached an agreement over their respective shares of the waterway's waters and related revenues.

Tehran cautioned that reopening the crucial shipping route would require more than just an agreement with Oman, leaving uncertainty over the full restoration of traffic through the waterway. US President Donald Trump said 10 million barrels of oil had passed through the Strait of Hormuz on Tuesday, while reiterating his claim that mines in the waterway had been cleared.

New US sanctions against Iran turned out to be less aggressive than markets had anticipated, with the White House sparing Iran's trading partners from tougher measures. However, geopolitical risks remain a key source of uncertainty for energy markets, with Russian President Vladimir Putin reportedly preparing an escalation in Ukraine that could pose further risks to global energy supplies.