Oil Prices Plummet on Renewed Hopes for Strait of Hormuz Reopening
Oil prices plummeted more than $2 a barrel to a two-week low on Wednesday as talks between Iran and Oman sparked renewed hopes that the Strait of Hormuz could reopen, easing shipping constraints in the key Middle East region.
Brent crude futures fell by $2.25 (2.54%) to $86.33 a barrel by 08:10 GMT, while U.S. West Texas Intermediate crude futures dropped by $2.21 (2.68%) to $80.15.
The discussions between Iran and Oman aim to manage the strait, which carried about one-fifth of global oil and liquefied natural gas shipments before the US-Israeli conflict with Iran began in February.
Bjarne Schieldrop, chief analyst at SEB Research, attributed the price drop to 'renewed focus on the discussion between Iran and Oman regarding a deal for transiting oil and other petrochemicals through the Strait of Hormuz.'