Brent crude fell 0.74% to $78.77 a barrel on Wednesday as the United States, Iran and Oman worked on an agreement to manage ship traffic through the Strait of Hormuz. A reported Houthi missile strike on a Saudi tanker briefly lifted prices, but Brent still extends a multi-session slide from the $83.85 level recorded on August 3.
Brent crude, the international benchmark, fell 0.74% to $78.77 a barrel on Wednesday. U.S. West Texas Intermediate futures dropped 1% to $74.93. The declines came on reports that the United States, Iran and Oman were negotiating an agreement to manage ship traffic through the Strait of Hormuz.
US, Iran and Oman negotiate Hormuz shipping deal
Under the interim arrangement described by two regional sources, inbound ships would transit Iran's territorial waters while outbound vessels would sail through Oman's waters in coordination with Tehran. Treasury Secretary Scott Bessent told CNBC on Tuesday that a deal to unlock the waterway could be reached this week. President Trump told Fox News that the negotiations had gone on all day: According to CNBC: "It looks like things are very good."
Houthi missile strike briefly lifts prices
Prices briefly moved higher after Yemen's Iran-backed Houthis reportedly hit a Saudi Arabian tanker with a missile near Yanbu, a major port for Saudi crude exports on the Red Sea. The U.S. and Iran signed a memorandum of understanding on June 17 to open Hormuz, but the deal quickly collapsed as fighting erupted over the route ships take through the strait. Iran had targeted vessels along Oman's coast under U.S. military protection to force ships through its own waters, and Washington retaliated with more than a dozen waves of airstrikes and reimposed its naval blockade against Iran.
Brent extends multi-session slide
The pullback extends a multi-session decline in Brent, which traded in a $78.4–$78.5 a barrel range on Wednesday. That marks a drop from the $83.85 level recorded on August 3, following President Trump's decision to hold off on further action against Iran.
Market pricing suggests a reduced probability of crude oil reaching a new all-time high by September 30. Crypto Briefing said observers are watching for signals from upcoming OPEC meetings and new data from the U.S. Energy Information Administration.
Sources: CNBC, Crypto Briefing
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