Diplomatic talks between Iran and Oman spark optimism for reduced oil transit risks, pressuring WTI prices near $80.90.
West Texas Intermediate crude fell to $80.90 in early European trading Thursday, extending losses on expectations the Strait of Hormuz may reopen. The decline follows reports of a revenue-sharing agreement between Iran’s IRGC and Oman, though Iran cautioned a full reopening requires broader negotiations.
Prices had stabilized above $81 earlier this week amid geopolitical tensions and U.S. threats of new sanctions on Iran. Analysts noted the interim framework discussed Tuesday lacked details on transit fees or timelines, leaving supply risks unresolved.
U.S. crude inventories rose modestly last week, according to the Energy Information Administration, adding downward pressure. However, lingering U.S.-Iran tensions could reverse losses if escalation fears resurface.