Comments from Pakistan’s defense minister signal progress on Hormuz shipping talks, pressuring crude prices after earlier gains.
Oil prices reversed earlier gains after Pakistan’s defense minister indicated progress toward a diplomatic arrangement over Hormuz shipping transits. West Texas Intermediate (WTI) crude, which had climbed to $84.61, fell 44 cents to $81.69 on the remarks.
The shift follows heightened rhetoric between the U.S. and Iran, with tensions escalating just days prior. Reports also suggest Oman-mediated talks on an alternative shipping channel are advancing, adding to downward pressure on prices.
Despite the pullback, WTI remains significantly higher for the week, reflecting lingering supply concerns amid geopolitical risks.