Oil Markets Await Developments in US-Iran Diplomatic Talks
Oil prices declined Thursday, as investors evaluated progress in talks between Iran and Oman. These discussions are seen as potentially paving the way for a US-Iran agreement to end a five-month conflict and reopen the vital Strait of Hormuz. Brent crude futures fell 47 cents to $78.98 per barrel; U.S. West Texas Intermediate (WTI) contracts dropped 53 cents to $74.69. This follows a slight Brent rise and minor U.S. crude decrease at Wednesday's close. Yuki Takashima, an economist at Nomura Securities, noted "some selling pressure emerged following reports of progress in talks between Iran and Oman." He added prices returned to levels seen after an interim US-Iran agreement on June 17, with investors awaiting final negotiation outcomes. A senior Iranian source and two regional officials told a news agency Wednesday of a proposed Iran-Oman deal to end the US-Iranian conflict. It grants Tehran control over vessels transiting the Strait of Hormuz, marking a significant concession. Washington has not yet commented. While President Donald Trump asserts a deal to reopen the Strait is imminent, U.S. officials insist they will never agree to Iranian control over navigation in this critical energy waterway. EIA data Wednesday showed U.S. crude oil inventories rose 2.5 million barrels to 407 million for the week ended July 31. This increase, with slight refinery utilization decline and increased imports, contradicted analyst forecasts of a 1.5 million barrel decrease.
