Oil Prices Slip as Iran-Oman Talks Raise Hopes for Peace Deal

Oil prices have slipped as investors weigh the potential impact of progress in Iran-Oman talks on US-Iran peace deal negotiations.

The Strait of Hormuz, which carries nearly a fifth of the world's oil supplies, has been at the center of tensions between Tehran and Washington.

A proposed agreement between Iran and Oman would give Iran control over ships entering the Gulf through the Strait, but US officials have repeatedly rejected this concession.

The market is focused on diplomatic efforts to end the conflict, with Brent crude futures falling 37 cents or 0.5% to $79.08 a barrel, while US West Texas Intermediate (WTI) crude declined 53 cents or 0.7% to $74.69 a barrel.

The increase in US crude oil inventories also weighed on prices, with the US Energy Information Administration reporting a rise of 2.5 million barrels to 407 million barrels in the week ended July 31.