Iran-Oman Talks Raise Hopes for Normalized Shipping Through the Strait of Hormuz
Oil prices continued their decline on Wednesday, falling for the second consecutive session as diplomatic efforts between Iran and Oman raised hopes that shipping through the Strait of Hormuz could normalize.
The West Texas Intermediate crude futures dropped $1.37, or 1.7 percent, to $80.99 a barrel, while Brent crude settled below $89 a barrel, its weakest close in over a week.
The catalyst for renewed selling was confirmation that Tehran and Muscat had resumed discussions over managing the strategic waterway, which handled around one-fifth of global oil and liquefied natural gas shipments before the war began in February.
Iranian officials said negotiations had restarted as the Islamic Republic faces mounting economic pressure from Washington, with the Treasury Department adding roughly 60 entities to its sanctions list on Monday.