Crude Oil Drops 6% in Two Days as Iran-Oman Talks Ease Strait of Hormuz Fears

Crude oil prices fell sharply for a second consecutive day on Wednesday, with Brent trading near $86 a barrel and WTI at $80.42, as hopes grew for a reopening of the Strait of Hormuz following renewed talks between Iran and Oman. Iran restarted negotiations with Oman over managing the strategic waterway, which handles one-fifth of global oil shipments, after coming under increased economic pressure from U.S. sanctions. The two countries discussed a joint temporary navigational corridor and agreed to clear mines from the Strait. JPMorgan estimates each additional month of disruption could add $7 to $8 per barrel to Brent prices, potentially reaching $114 if the issue persists for three months. Goldman Sachs warns Brent could hit $120 if shipping disruptions continue, though it forecasts $80 average in the fourth quarter.