Oil Prices Plummet on Iran-Oman Talks

Oil prices plummeted over $2 a barrel on Wednesday as talks between Iran and Oman revived hopes that the Strait of Hormuz could reopen, easing shipping constraints affecting supply in the key Middle East region.

Brent crude futures fell $2.25, or 2.54%, to $86.33 a barrel by 0810 GMT, their lowest since August 13, while U.S. West Texas Intermediate crude futures were down $2.21, or 2.68%, at $80.15, the lowest since August 10.

'It's renewed focus on the discussion between Iran and Oman regarding a deal for transiting oil and other petrochemicals through the Strait of Hormuz,' said Bjarne Schieldrop, chief analyst, commodities, at SEB Research.