Oil rises amid anticipation of results from Hormuz talks
Oil prices rose as investors remained cautious about the outcomes of talks between Iran and Oman and whether they would restore the flow of oil supplies through the Strait of Hormuz. Brent crude futures rose 57 cents, or 0.72%, to $80.02 a barrel. U.S. West Texas Intermediate crude futures also climbed 36 cents, or 0.48%, to $75.58 a barrel. Brent crude posted a slight gain at Wednesday’s settlement, while U.S. crude edged lower.
Ismael Baghaei, a spokesperson for Iran’s Foreign Ministry, said Iran and the Sultanate of Oman had reached an understanding on the geographic coordinates of a navigational route through the Strait of Hormuz, and that a joint statement on the matter was being finalized, provided that specific third parties do not interfere.
Linh Tran, a market analyst at X.com, said, “Current diplomatic efforts have only raised hopes that tensions could be eased... Risks related to military activity, maritime shipping, and oil supplies from the Middle East remain firmly in place.”
A senior Iranian source and two regional officials told Reuters that a proposed agreement between Iran and Oman, aimed at helping to end the conflict between the United States and Iran, would grant Tehran control over ships entering the Gulf via the Strait of Hormuz, which would represent one of the largest concessions to Iran to date. The United States had not yet commented on the proposal.
While President Donald Trump said an agreement to reopen the strait was imminent, U.S. officials insisted they would never agree to Iran controlling access to one of the world’s most critical energy trade routes.
Yuki Takashima, an economist at Nomura Securities, said prices had returned to levels seen when the United States and Iran reached a temporary agreement on June 17, as investors closely monitored whether the two sides could reach a final deal.
Meanwhile, data from the U.S. Energy Information Administration showed that U.S. crude oil inventories rose, driven by a slight decline in refinery utilization rates and a modest increase in imports.
