Strait of Hormuz deal inches closer as oil prices dip; US commits to Tehran sanctions
Brent crude dips to $86 per barrel for first time in nearly two weeks amid Strait of Hormuz talks
Brent crude, the international oil benchmark, hovered around $86 per barrel Wednesday morning, a level not seen since Aug. 14.
West Texas Intermediate (WTI), the U.S. crude benchmark, similarly hit a nearly two-week low, dipping to approximately $80.
Falling oil prices come as Iran and Oman say they are close to reaching a deal on establishing a shipping route through the Strait of Hormuz, the vital chokepoint that carried roughly a fifth of the world’s daily oil supply before the Iran war began in late February.
“I am hopeful we will soon announce a temporary corridor for the Strait of Hormuz and practical arrangements to restore safe navigation,” Omani Foreign Minister Badr Albusaidi posted on X after speaking with his Iranian counterpart.
In May, President Donald Trump expressed opposition to an arrangement where Iran and Oman would control a portion of the strait, calling it “international waters.”
In August, Trump said he’d bomb Oman if it got in the way of U.S. negotiations with Iran.
