Oil prices retreat after a 4% gain last session amid stalled talks to reopen the Strait of Hormuz, a key shipping route.
West Texas Intermediate crude fell to $76.40 per barrel in Asian trading, reversing some of Friday’s 4% advance. The decline comes despite ongoing uncertainty over the reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments.
Iran and Oman are nearing an agreement to establish a safe shipping route, but Tehran warned any deal would not lead to an immediate reopening. Regional tensions persist, with Iran-backed Houthi militants claiming an attack on Saudi Arabia’s Jazan refinery and a tanker operated by Abu Dhabi National Oil Co. targeted in the Strait.
Diplomatic efforts remain deadlocked as Iran rejects direct talks with the U.S., demanding sanctions relief and an end to the naval blockade. President Trump indicated patience in negotiations, while Israel’s rejection of a Gaza ceasefire plan adds to regional instability.