Oil drops 2.6% as Iran-Oman Hormuz talks raise reopening hopes
Why it matters: The strait handled about one-fifth of global oil and LNG shipments before the war, but traffic remains far below normal.
Oil prices fell more than 2% on Aug. 26 after Iran and Oman revived talks on reopening the Strait of Hormuz, raising hopes that shipping constraints in a critical energy corridor could ease. Brent crude dropped $2.30, or 2.6%, to $86.28 a barrel, while U.S. West Texas Intermediate fell $2.08, or 2.53%, to $80.29. Iran and Oman said they discussed a joint temporary navigational corridor and agreed to clear mines from the waterway. But full reopening remains uncertain: Mohsen Rezaei of Iran’s Supreme National Security Council said Tehran is drawing up conditions, including steps tied to the broader conflict and U.S. sanctions. Kpler data showed just five commodity vessels transited the strait on Tuesday, well below the 10-day average of 15.
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Earlier in this story
- 17 hours agoIran delays full reopening of Strait of Hormuz until U.S. acts
- 22 hours agoOil drops 2.6% as Iran-Oman Hormuz talks raise reopening hopesreading now