Oil Falls Near 3% as Iran, Oman Restart Hormuz Corridor Talks

Oil prices fell about 2% on Wednesday. Iran said it resumed talks with Oman on managing the Strait of Hormuz, raising hopes for reopened shipping lanes.

Brent crude dropped to $86.27 a barrel, while US West Texas Intermediate slid to $80.87. Both benchmarks lost more than 3% on Tuesday.

Iran and Oman Discuss Temporary Hormuz Corridor

Iran and Oman have held on-and-off talks for weeks over Strait of Hormuz traffic. The waterway has historically carried about one-fifth of global oil and liquefied natural gas shipments. Volumes fell after fighting broke out in February.

The two countries said Tuesday they discussed a joint temporary navigational corridor. They also agreed to clear the strait of mines. Iran restarted the negotiations as it faces heightened economic pressure from President Donald Trump's administration.

"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."

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