Oil Prices Edge Lower Amid Oman-Iran Talks on the Strait of Hormuz

Oil prices declined slightly on Tuesday after reaching their highest levels in over a week. The drop came as analysts assessed progress in talks between Oman and Iran regarding shipping through the Strait of Hormuz, while disruptions to energy supplies from the Middle East continued.

Brent crude futures fell 50 cents, or 0.57%, to $87.22 a barrel by 13:17 GMT, while U.S. West Texas Intermediate (WTI) crude futures declined 36 cents, or 0.44%, to $81.77 a barrel.

The Strait of Hormuz is a critical waterway for global oil supplies, and any signs of de-escalation or a deal between Oman and Iran are good news for risk assets but bad for oil. However, a spokesperson for Qatar's Foreign Ministry noted that the talks were currently at an advanced stage, but there has been no significant progress.