Diplomatic talks between Iran and Oman spur speculation of reduced supply risks, weighing on oil prices.
West Texas Intermediate crude fell to $80.90 in early European trading Thursday, extending losses as diplomatic efforts between Iran and Oman raised expectations of a potential reopening of the Strait of Hormuz. The benchmark dropped below $81.00 for the first time in the session.
The decline follows recent geopolitical tensions that had supported oil prices, with the Strait of Hormuz serving as a critical chokepoint for global crude shipments. Prior sessions saw WTI trade near $82.00 amid supply disruption concerns.
Markets are monitoring developments closely, with any progress in negotiations likely to ease fears of prolonged supply constraints.