Oil Prices Slip as Hopes for US-Iran Peace Deal Rise

Oil prices slipped on Thursday as investors assessed progress in talks between Iran and Oman, which could pave the way for a US-Iran peace deal. Brent crude futures fell by 0.5% to $79.08 per barrel, while WTI declined 0.7% to $74.69. The drop comes after Brent settled up slightly on Wednesday.

Yuki Takashima, economist at Nomura Securities, said that some selling pressure emerged following reports of progress in the Iran-Oman talks. He added that prices have returned to levels seen when the US and Iran signed an interim peace agreement on June 17.

A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters. However, this concession has raised concerns that it may not be acceptable to the US.