Global crude oil prices fell on Wednesday after reports that Iran and Oman have resumed talks on a temporary navigation corridor through the Strait of Hormuz, raising hopes that shipping through the key oil route could gradually resume.
Reuters reported that Iran and Oman are discussing a temporary joint navigational corridor and possible measures to clear mines from the strait. The reports eased some concerns over prolonged disruptions to oil shipments.
Brent crude was trading at around $86.69 per barrel, while West Texas Intermediate (WTI) stood at $80.61 per barrel.
Markets also appeared to look past the latest US sanctions targeting Iran’s oil trade, with traders focusing instead on signs of progress toward easing the disruption around the Strait of Hormuz.
ING commodity analysts said reports of progress in peace talks, including a statement from Pakistan, also added to the downward pressure on oil prices.
However, analysts cautioned that talks between Iran and Oman alone would not immediately restore normal oil flows through the strait.
“An agreement between these two parties does not mean we will see normalisation in oil flows through the key chokepoint,” ING analysts Warren Patterson and Ewa Manthey said.
They noted that the US would likely need to lift its blockade on Iranian ports and ease sanctions before oil shipments could return to normal levels.
Tanker-tracking data also showed that traffic through the Strait of Hormuz remains extremely limited. Windward reported that only one vessel, a Barbados-flagged LPG carrier, entered the strait on Tuesday, while no outbound tanker traffic was recorded during the following 24 hours.
The vessel was also operating in dark mode, according to the tracking data.
ING analysts said estimates of oil volumes moving through the Strait of Hormuz vary widely. While the US has cited flows of around 8–9 million barrels per day, other tracking estimates put actual volumes between 2 million and 6 million barrels per day.
The Strait of Hormuz remains one of the world’s most important oil shipping routes, meaning any sustained disruption could continue to put pressure on global crude prices.
