Oil Prices Slip as Iran-Gulf Talks Revive Hopes for Hormuz Reopening

Oil prices slipped on Friday as investors weighed reports of a possible deal between Iran and Gulf states to reopen the Strait of Hormuz, a strategic waterway that handles nearly one-fifth of global oil shipments.

The development could pave the way for broader negotiations aimed at ending the conflict involving Iran. Brent crude futures fell 70 cents, or 0.85%, to $81.79 a barrel, while U.S. West Texas Intermediate (WTI) crude declined 53 cents, or 0.69% to $76.76 a barrel.

The pullback followed a volatile week in energy markets, with traders reassessing geopolitical risks after sharp gains in the previous session. Oil prices had surged by more than $3 per barrel on Thursday after Iran reviewed draft legislation that would prohibit U.S. and Israeli vessels from entering the Strait of Hormuz.

A senior Iranian official said Tehran is seeking transit fees of between 5% and 7% of the value of cargoes passing through the Strait of Hormuz under any reopening arrangement. Oman, which has been involved in discussions, is reportedly proposing a lower fee of around 3%, while the United States continues to oppose any transit charges.

Industry sources said the proposed framework remains difficult to implement because of U.S. sanctions and insurance restrictions that complicate financial transactions related to shipping through Iranian waters. Market analysts cautioned that the week's developments do not necessarily signal a lasting reduction in regional tensions.