Oil Prices Slide as Iran-Oman Talks Aim to Reopen Hormuz Strait

Oil prices declined for a third straight day as Iran and Oman held talks to reopen the Strait of Hormuz, a vital waterway that connects Middle East oil producers with global markets. The Brent crude futures contract fell 2.2% to $86.65 per barrel on the London market at 6:07 a.m.

The discussions aim to establish a 'temporary joint maritime corridor' and eventually a permanent route for shipping through the strait, according to the Oman News Agency. Iranian Foreign Minister Abbas Araghchi and Omani counterpart Badr Albusaidi led the talks, which will continue with the goal of agreeing on a mechanism for information exchange, traffic management, and security services.

The decline in oil prices this week is about 8%, as diplomatic efforts to de-escalate tensions between Iran and the US gain traction. Dennis Kissler, senior vice president at BOK Financial Securities, said that 'crude is now beginning to price in a sooner rather than later peace deal'.