Iran-Oman Deal Falls Short as Traders Fear Fragile Agreement

Oil prices slipped on Thursday despite a reported agreement between Iran and Oman to restore oil flows via the Strait of Hormuz. The proposed deal would give Tehran control over ships entering the Gulf, one of the biggest concessions yet to Iran.

The Strait of Hormuz handles about one-fifth of global daily oil and liquefied natural gas supplies. Iran's Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday that an understanding had been reached on geographic coordinates for a shipping route through the strait, pending certain conditions being met.

Despite this development, traders remain cautious due to concerns over the fragility of any new deal. Tim Waterer, chief market analyst at KCM Trade, said 'Traders still remember the short-lived Memorandum of Understanding signed in June, so there is understandable anxiety that any new deal could prove equally fragile.'