Oil Prices Slip on Iran-Oman Strait Talks Progress
Oil prices declined on Thursday as Iran announced progress in talks with Oman over the Strait of Hormuz agreement, which would give Tehran control over ships entering the Gulf through the strait.
The Brent crude futures fell by $0.33 or 0.42% to $79.12 a barrel, while U.S. West Texas Intermediate futures declined by $0.42 or 0.56% to $74.80 a barrel.
Iran's Foreign Ministry spokesperson Esmaeil Baghaei said that a joint announcement on the geographic coordinates for a shipping route through the Strait of Hormuz is being finalised, provided certain third parties do not interfere.
Nomura Securities economist Yuki Takashima stated that some selling pressure emerged following reports that talks between Iran and Oman are making progress.
Investors are closely watching whether the United States and Iran can reach a final deal after signing an interim peace agreement on June 17, with prices returning to levels seen at the time.