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WTI extends losses as Strait of Hormuz talks lift risk appetite in Asia

WTI is down more than 1% to around $80, after Iran and Oman agreed to restart discussions on safe navigation through the Strait of Hormuz.

Reported · Written up by our desk · Major Pairs

Asian stock markets rose on Wednesday as oil prices extended their decline, with renewed hopes for shipping through the Strait of Hormuz boosting sentiment. FXStreet said the Strait is a vital passage for almost 20% of global energy supply, and easing shipping concerns helped weigh on crude.

At press time, the Nikkei 225 was up 0.7% near 66,300, Shanghai gained about 0.7% to just above 3,900, the Hang Seng added similar gains, and the KOSPI surged more than 2% to near 6,880. In the oil market, WTI was down a little over 1% to around $80, extending its losing streak for a third session.

Oil pressure accelerated after reports that Iran and Oman agreed to restart discussions on safe navigation through the waterway. According to FXStreet, Iranian Foreign Minister Abbas Araghchi and Oman counterpart Badr Albusaidi discussed an “interim framework” aimed at resuming shipping, a shift that could lower energy costs for import dependent Asian economies.

Markets also looked ahead to comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium, due to begin early Thursday, as traders assessed the outlook for policy.

response_format_note: No investment advice. Percentages are presented to one decimal.

Latest closeWTI crude $82.40 ▲1.4%|Nikkei 225 68,308.59 ▲1.2%|Hang Seng 25,396.51 ▼0.2%

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