LONDON – Web Desk: Oil prices edged lower on Thursday after Iran reported progress in talks with Oman on a shipping route through the Strait of Hormuz, with investors cautiously awaiting signs of a US-Iran peace deal.
Brent crude futures fell 33 cents (0.42%) to $79.12 a barrel, while US West Texas Intermediate futures declined 42 cents (0.56%) to $74.80 a barrel. Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Iran and Oman have reached an understanding on geographic coordinates for a Hormuz shipping route, with a joint announcement being finalized.
Nomura Securities economist Yuki Takashima said some selling pressure emerged following reports of progress in Iran-Oman talks. Prices have returned to levels seen when the US and Iran signed an interim peace agreement on June 17.
A proposed Iran-Oman deal would give Tehran control over ships entering the Gulf through the Strait, according to Reuters sources. However, US officials have repeatedly insisted they would never agree to Iran controlling access to one of the world’s most important energy trade routes.
ING analysts said the real hinge point is the trajectory of US-Iran discussions, as meaningful progress is essential before disrupted energy flows can realistically resume. Meanwhile, Houthi attacks on Saudi oil tankers continued, with Yemen’s Iran-aligned group claiming missile strikes off Yanbu and in the Gulf of Aden.
