Oil prices fell more than $2 a barrel on Wednesday as talks between Iran and Oman revived hopes that the Strait of Hormuz could reopen and remove shipping constraints affecting supply in the key Middle East region.
Brent crude futures fell $2.30, or 2.6%, to $86.28 a barrel by 0447 GMT, earlier dropping to their lowest since August 13. U.S. West Texas Intermediate crude futures were down $2.08, or 2.53%, at $80.29, earlier sinking to their lowest since August 10.
Both benchmarks fell more than 3% on Tuesday. “The market continues to react to developments surrounding navigation through the Strait of Hormuz and hopes for progress in talks between Iran and Oman have triggered selling,” said Mitsuru Muraishi, an analyst at Fujitomi Securities.
“That said, uncertainty over the outlook has prompted bargain buying, limiting further losses, and prices are likely to remain range-bound for the time being,” he added.
Iran said it had restarted talks with Oman to manage the strait as it faces heightened economic pressure from U.S. President Donald Trump.
