Oil Markets Hold Their Breath as Iran-Oman Hormuz Deal Hangs in the Balance

TLDR

• Brent crude sits at $79.54 and WTI at $75.27, both down over 10% in the past week
• Iran and Oman agreed on coordinates for a Strait of Hormuz shipping route, but a full deal is not done
• Houthi forces attacked two Saudi oil tankers in the Red Sea and Gulf of Aden
• U.S. crude inventories rose 2.5 million barrels last week, against expectations of a draw
• Gulf crude exports remain about 40% below pre-war levels from late February

Brent crude futures were trading at $79.54 a barrel on Thursday. U.S. West Texas Intermediate futures sat at $75.27. Both benchmarks have lost more than 10% over the past week.

Iran and Oman reached an understanding on the geographic coordinates for a possible shipping route through the Strait of Hormuz. However, a full deal has not been reached. Talks on cargo fees, inspections, and security arrangements are still ongoing.

Iran’s Foreign Ministry confirmed that a joint announcement was being finalized, but said certain third parties could still derail the process.

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