Oil Prices Plummet on Renewed Iran-Oman Talks
Oil prices dropped by more than 3% on Wednesday as renewed talks between Iran and Oman raised hopes that the Strait of Hormuz could reopen, potentially easing concerns about global oil supplies.
The price of West Texas Intermediate crude futures fell to $80.99, down from its previous settlement at $82.36 on August 13, according to early trading data.
US President Donald Trump had announced an expansion of sanctions against Iran on Monday, which could have threatened global oil supplies and led to higher prices, but the talks between Iran and Oman may alleviate some of those concerns.
The Strait of Hormuz is a critical waterway that handles around one fifth of global oil shipments, and its closure or disruption has been a major concern for oil markets in recent months.