Oil prices fall for a third consecutive day after Iran and Oman reach an agreement on the Strait of Hormuz
Kyiv • UNN
Oil prices fell for a third consecutive day after Iran announced an agreement with Oman regarding the route through the Strait of Hormuz. WTI is trading at around $75, while Brent is above $79 per barrel.
Global oil prices continued to decline for the third consecutive day following Iran’s announcement that it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz. Bloomberg reports, UNN writes.
Details
The Iranian side said that the route would remain open for two to four months, but stressed that this did not mean the full resumption of shipping through the strait. Against the backdrop of these developments, traders began to anticipate a partial resumption of energy supplies through one of the world’s most important maritime routes.
WTI crude ended trading at around $75 per barrel after falling 11%, while Brent closed above $79 per barrel. U.S. President Donald Trump said that Washington was continuing negotiations with Tehran, adding that he would "see what happens."
The market remains cautious amid escalation risks
U.S. oil prices have already fallen below $80 per barrel as the global oil market assesses the potential for a deal with Iran. If a deal is reached, the price of oil could fall to $70 per barrel
At the same time, Bloomberg notes that market participants remain cautious due to the risk of a new escalation in the Middle East. Statements by Yemen’s Houthis claiming an attack on a Saudi oil tanker in the Gulf of Aden and threats against other vessels in the Red Sea have added to the uncertainty.