Oil Prices Slide 2% on Iran-Oman Talks to Reopen Strait of Hormuz

Oil prices plummeted by around 2% on Wednesday, adding to Tuesday's losses. The drop came as Iran and Oman resumed talks to manage the Strait of Hormuz, a key waterway for global oil shipments.

Brent crude futures fell $1.78 per barrel to $86.80, while US West Texas Intermediate crude futures dropped by $1.49 to $80.87. Both benchmarks lost more than 3% in Tuesday's session.

Mitsuru Muraishi, an analyst at Fujitomi Securities, said that market developments surrounding the Strait of Hormuz have triggered selling. However, he noted that uncertainty over the outlook has prompted bargain buying, limiting further losses and keeping prices range-bound for now.