Oil Prices Drop for Third Straight Day as Iran-Oman Talks Raise Hopes for Hormuz Reopening

TLDR

• Brent crude fell 2.5% to $86.38 and WTI dropped 2.2% to $80.53 a barrel
• Iran and Oman discussed a temporary framework to reopen the Strait of Hormuz
• Both countries agreed to work together to clear the strait of mines
• Oil prices are down over 6% this week on diplomatic optimism
• Russia-Ukraine tensions add further supply risk to global oil markets

Oil prices fell for a third straight day on Tuesday as talks between Iran and Oman raised hopes that the Strait of Hormuz could reopen, easing fears about global crude supply.

Brent crude for October delivery fell 2.5% to $86.38 a barrel. West Texas Intermediate dropped 2.2% to $80.53, after dipping below the $80 mark earlier in the session. Both contracts were on track for their lowest settlement in nearly two weeks.

The declines came after Iran and Oman said their foreign ministers held talks in Tehran on a framework to temporarily reopen the Strait of Hormuz. The strait had supplied roughly 20% of the world’s crude before the conflict disrupted flows.

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