WTI Price Tumbles on Hormuz Reopening Hopes
The price of West Texas Intermediate (WTI) oil futures on NYMEX has fallen by 0.45% to around $74 during early European trading on Thursday, nearing its three-week low of $73.51 posted the previous day.
This downward pressure on oil prices is largely due to expectations that the Strait of Hormuz will reopen soon, which would alleviate concerns about global energy supply disruptions.
Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, has stated that Iran and Oman are close to finalizing a proposed framework to manage navigation through the passage, with a senior Gulf official estimating a 50% chance of an agreement being reached by Friday.
The proposed joint toll-type system near the Hormuz is seen as a key factor in facilitating the reopening of the Strait.