Oil Prices Tumble Amid Ongoing US-Iran Tensions

Oil prices fell on Thursday as investors weighed talks between Oman and Iran over the Strait of Hormuz, even as Washington and Tehran traded strikes on each other's military targets.

Brent futures dropped $1.42, or 1.56%, to $89.32 a barrel at 1324 GMT after touching a high of $93.31, while US West Texas Intermediate (WTI) crude futures fell $1.14, or 1.35%, to $83.32, having hit a high of $85.94.

Claire Hollingsworth's source, Hamad Hussain, a climate and commodities economist at Capital Economics, suggested that Oman's talks with Iran could indicate progress in re-opening the Strait of Hormuz, which handles around a fifth of global oil and liquefied natural gas flows.

However, Tim Waterer, chief market analyst at KCM Trade, cautioned that until safe passage through the Strait is no longer a gamble, the risk premium in oil will remain. 'Hope for diplomacy is welcome, but the market is pricing in the reality of ongoing strikes', he said.