Oil Prices Slip as Iran-Oman Talks Progress

Oil prices have declined as investors bet on progress between Iran and Oman to reopen the Strait of Hormuz, but the road to normal supply remains uncertain. Brent crude futures fell 0.4% to $79.12 a barrel by 4:18 am GMT, dropping below $80. West Texas Intermediate declined 0.6% to $74.80.

The agreement between Iran and Oman involves setting coordinates for a proposed shipping route through the strait and finalizing a joint statement. However, Tehran has indicated that this arrangement would still depend on outside powers, particularly the US, not obstructing the process. This structure remains politically sensitive because Washington has opposed any arrangement that allows Tehran to control access or charge fees in one of the world's most important energy corridors.

Nomura economist Yuki Takashima said progress in the talks had encouraged renewed selling in crude. He noted that prices have returned to levels seen around the June 17 interim agreement, leaving the market focused on whether the US and Iran can convert another temporary understanding into a lasting settlement.