Oil prices are falling amid progress in negotiations over the Strait of Hormuz — Reuters
Global oil prices continued to fall on Thursday, August 6, amid reports of progress in negotiations between Iran and Oman regarding shipping through the Strait of Hormuz. Investors are also anticipating a possible peace agreement between the U.S. and Iran.
As of 6:18 a.m. Kyiv time, Brent crude futures fell by 33 cents, or 0.42%, to $79.12 per barrel. Meanwhile, U.S. WTI crude lost 42 cents, or 0.56%, and was trading at $74.80 per barrel.
The day before, Iranian Foreign Ministry spokesman Esmail Baghai stated that Tehran and Muscat had agreed on the geographical coordinates of a maritime route through the Strait of Hormuz and were finalizing a joint statement.
Yuki Takashima, an economist at Nomura Securities, noted that reports of progress in the negotiations had increased pressure on oil prices. According to him, investors are closely monitoring whether the U.S. and Iran will be able to reach a final peace agreement.
According to Reuters, the proposed agreement would grant Iran control over ships entering the Persian Gulf via the Strait of Hormuz. At the same time, the U.S. has not yet commented on this proposal, although U.S. officials have previously stated that they would not agree to transfer control over access to the strait to Tehran.
ING analysts note that the future dynamics of the oil market will depend primarily on the course of negotiations between Washington and Tehran, as only substantial progress will allow for the resumption of disrupted energy supplies.
Additional pressure on the market is coming from data showing a rise in U.S. oil inventories, as well as reports of new attacks by Yemeni Houthis on oil tankers in the Red Sea. Saudi Arabia has not yet confirmed these incidents.
This was reported by Reuters.
As a reminder, oil prices rose by more than 1.5% during Asian trading, reaching their highest level in over six weeks. The market reacted to attacks by Yemeni Houthis on oil tankers in the Red Sea and a new wave of U.S. strikes against Iran.
Over the past few days, Iran has been secretly moving oil tankers through the Strait of Hormuz even before the United States reinstated its naval blockade of Iranian ports.
