Oil prices trended lower on Thursday on the progress in Iran-Oman talks, with investors cautiously waiting for signs of a U.S.-Iran peace deal and progress on reopening the Strait of Hormuz. Brent crude futures fell 33 cents, or 0.42%, to $79.12 a barrel by 0418 GMT. U.S. West Texas Intermediate futures declined 42 cents, or 0.56%, to $74.80 a barrel. Brent settled up slightly on Wednesday, while WTI edged lower. Iran and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, and a joint announcement is being finalized, provided certain third parties did not interfere, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday.
“Some selling pressure emerged following reports that talks between Iran and Oman are making progress,” said Yuki Takashima, economist at Nomura Securities. Prices have returned to the levels seen when the United States and Iran signed an interim peace agreement on June 17, with investors closely watching whether the two sides can reach a final deal, he added.
