Signs of positive progress in talks involving the U.S. and Iran regarding the resumption of operations through the Strait of Hormuz have pushed international crude oil prices down to a three-week low.
Global benchmark Brent crude fell by nearly 5 percent to drop below $80 per barrel, while U.S. West Texas Intermediate (WTI) crude also dropped over 5 percent to trade around $76 per barrel.
U.S. Secretary of State Marco Rubio and Treasury Secretary Scott Bessent stated that progress has been made in discussions to restart vessel movement through the Strait of Hormuz. According to them, if necessary agreements are reached, the waterway could potentially reopen within this week. However, official details of a potential deal have not been made public. On the other hand, Iran stated that there are no direct negotiations with the U.S. and that discussions are taking place through Oman.
The Strait of Hormuz, through which nearly one-fifth of the world’s daily crude oil and liquefied natural gas is transported, has remained largely blocked since the conflict began. This created pressure on global energy supplies and caused sharp volatility in oil prices. In recent months, prices dropped whenever prospects for talks emerged, while escalating tensions pushed prices above $120 per barrel.
Analysts have noted that uncertainty remains regarding a permanent agreement. They stated that security risks for oil tankers remain high due to the ongoing conflict in the Middle East, with the recent sinking of an Indian-flagged vessel near Yemen making the situation even more sensitive. Meanwhile, the recent surge in oil prices has made petrol and diesel more expensive in many countries around the world, while major oil companies continue to reap high profits.
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