Oil Prices Slide as Iran-Oman Talks Hopes Offset US Sanctions
US oil prices extended their losses on Wednesday due to hopes that the Strait of Hormuz could reopen after Iran announced it had resumed talks with Oman about managing the waterway. The WTI contract fell $1.37, or 1.7%, to $80.99 as of 2240 GMT.
This loss comes on top of a 3.1% decline in Tuesday's trading session, which saw prices settle at their lowest since August 13. Iran's decision to restart talks with Oman is seen as a potential solution to the ongoing crisis in the region.
The Strait of Hormuz is a critical waterway that handles one-fifth of global oil shipments and liquefied natural gas. The US has been imposing economic pressure on Iran, including an expansion of sanctions announced on Monday, but it will not impose penalties immediately.