Oil Prices Slip on Strait of Hormuz Hopes Amid Fragile Supply System
Oil prices declined on Thursday as investors became optimistic about the Strait of Hormuz reopening, but physical exports remain far from normal.
The Brent crude futures fell 0.4% to $79.12 a barrel by 4:18 am GMT, dropping back below $80. West Texas Intermediate declined 0.6% to $74.80.
Nomura economist Yuki Takashima said progress in the talks had encouraged renewed selling in crude. He noted that prices had returned to levels seen around the June 17 interim agreement.
The emerging framework could place vessels entering the Gulf on an Iranian-controlled route, with outbound traffic overseen by Oman. However, this structure remains politically sensitive because Washington has opposed any arrangement that would allow Tehran to control access or charge fees in one of the world's most important energy corridors.