Oil Prices Dip on Hopes for Hormuz De-escalation

Oil prices dipped on Wednesday as hopes for a de-escalation in Iran war hostilities resurfaced, potentially restoring shipping traffic and oil flows in the Middle East.

The Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas passed before the war started at the end of February, could see a return to normalcy if Iran and Oman finalize their agreement on managing the waterway.

However, losses were limited by a maritime embargo declared by Yemen's Iran-aligned Houthis on Saudi ports and vessels, heightening risks to Red Sea shipping.

Brent crude futures fell 0.76% to $78.76 a barrel, while U.S. West Texas Intermediate futures dropped 1.57% to $74.58.