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WTI slips as Iran, Oman talks progress on Strait of Hormuz
WTI was down 1.3% to about $80.40, after Qatar said talks between Iran and Oman are at an advanced stage and supports an agreement to secure navigation through the Strait.
West Texas Intermediate US oil reversed course on Tuesday, retreating to around $80.40, down 1.28% on the day, after reports that negotiations between Iran and Oman over the Strait of Hormuz have moved closer to a resolution.
According to Qatar’s foreign ministry, talks between Oman and Iran have reached an advanced stage, which Qatar described as a critical juncture. Qatar said it has received positive feedback from both sides and supports an agreement that can guarantee the security of the strait and freedom of navigation, easing some geopolitical risk priced into oil.
The improvement comes after earlier gains tied to uncertainty over whether the Strait of Hormuz would reopen. The article notes that nearly one-fifth of global energy supply flows through the passage, and that the US has pressed for reparations linked to the war before maritime traffic can normalize.
Even with the diplomatic progress, investors are still watching for a final framework, the piece says. It also adds that Iran has cited conditions such as compensation for war damage, unfreezing assets, removing the US naval blockade, and lifting sanctions, and that Iranian officials have indicated they will not resume direct negotiations with the US during President Trump’s term.
Latest closeWTI crude $82.30 ▲5.3%