Oil prices drop 2% as Iran and Oman discuss reopening Strait of Hormuz

Oil prices fell about 2% on Wednesday after Iran said it resumed talks with Oman on managing the Strait of Hormuz, raising hopes the strategic waterway could reopen. Brent crude dropped to $86.80 a barrel, while U.S. West Texas Intermediate fell to $80.87. The talks come as Iran faces heightened economic pressure from U.S. sanctions, and the two countries discussed a joint temporary navigational corridor and clearing mines from the strait. The waterway handled one-fifth of global oil and LNG shipments before the war began in February. The U.S. is sending personnel back to some Middle East diplomatic missions, signaling lower near-term conflict risk. However, an oil tanker was struck by an unidentified projectile near the strait on Tuesday, and U.S. crude inventories rose more than expected.