Progress in Iran-Oman talks over the Strait of Hormuz eases supply disruption fears, weighing on oil prices.
West Texas Intermediate crude fell 1.28% to $80.40 on Tuesday, reversing earlier gains. The decline followed reports of diplomatic progress between Iran and Oman regarding the Strait of Hormuz, a critical chokepoint for global oil shipments.
Prior to the news, WTI had traded higher amid broader market volatility. The Strait of Hormuz handles roughly one-fifth of global oil flows, making any geopolitical developments in the region closely watched by traders.
The retreat underscores how sensitive oil markets remain to supply risk narratives, even as broader macroeconomic concerns persist.