Oil Prices Drop 2% as Iran-Oman Talks on Hormuz Reopens

Oil prices fell about 2% on Wednesday after Iran resumed talks with Oman on managing the Strait of Hormuz, raising hopes the strategic waterway could reopen. Brent crude dropped $1.78 to $86.80 a barrel, while US West Texas Intermediate fell $1.49 to $80.87. The talks follow Iran's heightened economic pressure from US President Donald Trump, with both countries discussing a joint temporary navigational corridor and agreeing to clear the strait of mines. The waterway handled one-fifth of global oil and LNG shipments before the war began in February. US crude inventories rose by about 4.2 million barrels last week, exceeding analyst expectations of 600,000 barrels. Washington is also sending personnel back to some Middle East diplomatic missions, suggesting lower risk of near-term escalation with Iran.