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Oil slips as Iran and Oman talks raise hopes for Strait of Hormuz access
Brent was around $86.7 per barrel and WTI about $80.6, while tanker-tracking data showed only one vessel transiting the Strait on Tuesday.
Crude prices fell after news that Iran and Oman are renewing talks about joint temporary management of the Strait of Hormuz, a development traders interpreted as potential progress toward reopening the waterway for normal traffic. Reuters said the two sides are discussing a joint temporary navigational corridor and efforts to clear mines in the strait.
At the time of writing, Brent crude was near $86.7 per barrel and West Texas Intermediate around $80.6 per barrel. OilPrice also noted that traders appeared to shrug off new U.S. sanctions against Iran aimed at further squeezing its oil trade.
ING commodity analysts said a Pakistani statement indicating progress on peace talks also added downward pressure on crude. However, the analysts cautioned that even an Iran-Oman agreement would not automatically normalize oil flows through the key chokepoint.
Tanker tracking data cited by the report showed just one vessel traversing the Strait of Hormuz on Tuesday, a Barbados-flagged LPG carrier that entered the strait. Windward reported no outbound tanker traffic during the prior 24-hour period, and the data indicated the tanker moved in dark mode.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%