Oil prices fall for a third day as diplomatic progress and less aggressive US measures ease supply disruption fears.
West Texas Intermediate crude dropped to $80.10 per barrel in Asian trading, extending losses amid reports of Iran and Oman discussing a joint maritime corridor in the Strait of Hormuz. Technical talks aim to establish a permanent arrangement covering traffic management and security services.
The decline follows three consecutive sessions of losses, driven by regional diplomacy and shifting expectations around US sanctions. Pakistan’s army chief visited Tehran to support ongoing talks, while Qatar confirmed its mediation efforts. Washington’s latest sanctions on Iran were less severe than anticipated, avoiding secondary measures on trading partners.
Despite the dip, supply constraints persist, with product markets tightening and crude flows remaining restricted, according to analysts. The supply backdrop continues to support a constructive outlook for Brent.