Iran-Oman Talks Boost Hopes for Strait of Hormuz Reopening

Oil prices took a hit on Wednesday as investors closely monitored talks between Iran and Oman over the Strait of Hormuz. The two countries are working out details of an agreement concerning the strait, after Iran's Revolutionary Guards said they had agreed on a mechanism for sharing the waterway and its revenues.

A senior Iranian source confirmed that the talks were underway, but no further details were provided.

The Strait of Hormuz is a crucial shipping route that carries about one-fifth of global oil and gas supplies. A partial reopening of the strait could remove another layer of the geopolitical premium from oil prices, according to Ole Hansen, head of commodity research at Saxo Bank.