KABUL (Pajhwok): Global oil prices fell by around 2.5 percent on Wednesday as renewed talks between Iran and Oman over navigation through the Strait of Hormuz raised hopes the strategic waterway could reopen.
According to Reuters, Brent crude futures fell $2.30, or 2.6 percent, to $86.28 a barrel by 0447 GMT, after earlier reaching their lowest level since August 13.
US West Texas Intermediate (WTI) crude fell $2.08, or 2.53 percent, to $80.29 a barrel, after touching its lowest level since August 10. Both benchmarks fell more than 3 percent on Tuesday.
“The market continues to react to developments surrounding navigation through the Strait of Hormuz,” said Mitsuru Muraishi, an analyst at Fujitomi Securities, adding that hopes for progress in Iran-Oman talks had triggered selling.
Iran and Oman have held talks in recent weeks on managing vessel traffic through the strait. On Tuesday, the two countries said they discussed establishing a “joint temporary maritime route” and agreed on mine-clearance efforts.
Meanwhile, the United States has begun returning some personnel to diplomatic missions in the Middle East that were evacuated or scaled back amid tensions with Iran, Reuters reported, citing two sources. The move suggests Washington sees a lower risk of near-term escalation, although some missions will initially operate below full capacity.
The development comes after the United States expanded sanctions against Iran on Monday and warned countries continuing to trade with Tehran that they could face restrictions. Washington said the measures would not be implemented immediately.
Iranian officials have rejected the pressure campaign, saying Washington will not succeed in isolating the country.
kk/sa
