Oil Prices Plummet as Iran-Oman Shipping Talks Progress
Oil prices dropped on Thursday as investors cautiously await signs of a U.S.-Iran peace deal and progress on reopening the Strait of Hormuz. Brent crude futures fell 33 cents, or 0.42%, to $79.12 a barrel by 0418 GMT, while U.S. West Texas Intermediate futures declined 42 cents, or 0.56%, to $74.80 a barrel.
The decline follows reports that Iran and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, with a joint announcement being finalized. However, Yuki Takashima, economist at Nomura Securities, noted that some selling pressure emerged after talks between Iran and Oman made progress.
The proposal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, one of the biggest concessions yet to Iran. While President Donald Trump has said a deal reopening the strait is imminent, U.S. officials have repeatedly insisted they would never agree to Iran controlling access to one of the world's most important trade routes for energy supplies.