Oil Prices Tumble as Hormuz Deal Nears
Oil prices declined on Friday as investors assessed signs that Gulf states and Iran are moving closer to an agreement to reopen the Strait of Hormuz under a temporary arrangement. This could pave the way for broader talks aimed at ending the war between Iran and the United States.
According to Brent crude futures, oil prices fell 57 cents, or 0.7%, to $81.92 a barrel by 10:14 GMT, while US West Texas Intermediate crude futures declined 33 cents, or 0.4%, to $76.96 a barrel.
The proposed agreement would involve Iran imposing fees on vessels using the strait, with senior Iranian officials suggesting charges equivalent to between 5% and 7% of the value of cargo shipments. Oman is discussing a fee of around 3%, while Washington wants shipping through the waterway to remain free of charges.