WTI Oil Prices Remain Subdued Amid Iran-Oman Deal Uncertainty
West Texas Intermediate (WTI) oil prices have remained subdued for the fourth consecutive day, trading around $74.20 per barrel during Asian hours on Thursday.
The decline in prices comes after Iran and Oman agreed to a temporary shipping route through the Strait of Hormuz, fueling expectations of increased energy flows from the Middle East.
Analysts remain cautious about the agreement's durability due to its temporary nature and historical precedent. Houthi militants claimed an attack on a Saudi oil tanker in the Gulf of Aden, highlighting ongoing threats to regional maritime security.
US officials expressed confidence that a broader deal with Iran is nearing, but investors remain guarded. TD Securities notes that memories of the last downturn remain fresh, and actual supply hit the market when crude oil prices tanked during the June MoU.