Iran-Oman Progress Sparks Oil Price Dip

Oil prices fell on Thursday as investors became cautious about progress in Iran-Oman talks over the Strait of Hormuz. Brent crude futures dropped by 33 cents, or 0.42%, to $79.12 a barrel, while U.S. West Texas Intermediate futures declined by 42 cents, or 0.56%, to $74.80 a barrel.

The decline in oil prices came after Iran's Foreign Ministry spokesperson Esmaeil Baghaei announced that the country and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz. A joint announcement is being finalised, provided certain third parties did not interfere.

Yuki Takashima, economist at Nomura Securities, said that some selling pressure emerged following reports that talks between Iran and Oman are making progress. Prices have returned to the levels seen when the United States and Iran signed an interim peace agreement on June 17, with investors closely watching whether the two sides can reach a final deal.