Oil Prices Slip as Iran-Oman Talks Fuel Hopes for US-Iran Peace Deal
Oil prices slipped on Thursday as investors weighed progress in Iran-Oman talks that could lead to a US-Iran peace deal and reopen the Strait of Hormuz.
Brent crude futures fell 37 cents, or 0.5%, to $79.08 a barrel by 0024 GMT, while US West Texas Intermediate futures declined 53 cents, or 0.7%, to $74.69 a barrel.
Economist Yuki Takashima at Nomura Securities attributed the decline to reports of Iran-Oman talks making progress, which has brought prices back down 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 major concession that has raised concerns among US officials who insist they would never agree to Iran controlling access to the world's most important trade route for energy supplies.