Oil Prices Fall as Hormuz Negotiations Ease Concerns
Oil prices retreated during Thursday's trading after reports of continued talks between Oman and Iran regarding the Strait of Hormuz eased market concerns. Brent crude fell 1.5% to US$89.36 per barrel, while WTI dropped 1% to US$83.60 per barrel.
Oman had previously proposed a management scheme for the Strait of Hormuz that would allow Iran to retain partial control and collect voluntary fees from passing vessels. Although the initial proposal was rejected, the continuation of negotiations offers hope that this vital energy shipping route will not be completely shut off.
However, geopolitical tensions remain high following major strikes by the US military against several facilities belonging to Iran's Revolutionary Guard. The operations targeted command centers, missile and drone facilities, as well as coastal surveillance and defense systems.
Consequently, oil prices remain prone to high volatility. Diplomatic progress could exert downward pressure on prices, but further attacks and shipping disruptions in the Strait of Hormuz could push Brent back above US$90 per barrel.
Source: Newsmaker.id
