Oil prices retreat as diplomatic progress in the Middle East eases supply disruption fears despite ongoing geopolitical tensions.
West Texas Intermediate crude fell to $81.30 per barrel in Asian trading Thursday, reversing modest gains after signs of diplomatic progress in the Middle East. Iran and Oman reached an agreement over revenue-sharing in the Strait of Hormuz, though Tehran noted reopening the waterway would require broader efforts.
Prices had risen earlier in the week on supply concerns but eased after U.S. sanctions on Iran proved less severe than feared. Analysts had expected a 597,000-barrel build in U.S. crude inventories, but official data showed only a 95,000-barrel increase to 428.9 million barrels for the week ended August 21.
Geopolitical risks persisted as Russia’s NORSI refinery suspended operations following a Ukrainian drone strike, adding to supply tightness in Eastern Europe.