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

Oil prices dropped by about 2% on Wednesday due to hopes that the Strait of Hormuz could reopen after Iran said it had restarted talks with Oman to manage the waterway.

The Brent crude futures fell $1.78, or 2.0%, to $86.80 a barrel, while U.S. West Texas Intermediate crude futures were down $1.49, or 1.8%, at $80.87, according to reports.

Mitsuru Muraishi, an analyst at Fujitomi Securities, said that the market continues to react to developments surrounding navigation through the Strait of Hormuz, and hopes for progress in talks between Iran and Oman have triggered selling.

The two countries discussed a joint temporary navigational corridor through the strait and agreed to clear it of mines. Despite ongoing tensions, the U.S. is beginning to send personnel back to some diplomatic missions in the Middle East that were evacuated or downsized amid tensions with Iran.