Oil Prices Drop as Iran-Oman Talks Revive Strait of Hormuz Hopes
Oil prices dropped by about 2% on Wednesday, extending the previous day's losses, as hopes rose that the Strait of Hormuz could reopen after Iran said it had resumed talks with Oman to manage the waterway.
The Brent crude futures fell $1.78, or 2.0%, to $86.80 a barrel by 0027 GMT, while US West Texas Intermediate crude futures were down $1.49, or 1.8%, at $80.87. Analysts said the market continues to react to developments surrounding navigation through the Strait of Hormuz and hopes for progress in talks between Iran and Oman have triggered selling.
Mitsuru Muraishi, an analyst at Fujitomi Securities, noted that uncertainty over the outlook has prompted bargain buying, limiting further losses. He added that prices are likely to remain range-bound for the time being.