Oil Prices Ease Amid Hopes for Strait of Hormuz Reopening
Oil prices have eased slightly on Wednesday as hopes rise for a de-escalation in Iran war hostilities, which could restore shipping traffic and oil flows through the Strait of Hormuz. However, losses were capped by threats from Yemen's Iran-aligned Houthi rebels to Saudi ports and vessels.
The Strait of Hormuz is crucial for global oil supplies, with about 20% of the world's oil and liquefied natural gas passing through it before the war started. Brent crude futures were down 2 cents, or 0.03%, at $79.34 a barrel by 11:51 a.m. ET (1551 GMT). U.S. West Texas Intermediate futures fell 35 cents, or 0.46%, to $75.42.
U.S. President Donald Trump said there was an 'all-day negotiation' on Tuesday with Iran, but Tehran denied that peace talks were under way. Analysts are skeptical about the prospects of reopening the strait due to concerns over control and agreement terms between the U.S. and Iran.