Oil prices drop as Iran-Oman talks on Hormuz reopen talks

Oil prices fell over $2 per barrel on Wednesday, August 26, amid talks between Iran and Oman on reopening the Strait of Hormuz. Brent futures dropped 2.6% to $86.28, while WTI fell 2.53% to $80.29, the lowest since mid-August. Iran confirmed it resumed negotiations with Oman on vessel movement through the strait, following increased US economic pressure. The two countries discussed a temporary navigation corridor and agreed to demine the waterway, though shipping remains inactive during talks. Only five cargo ships passed through on August 25, below the 10-day average of 15. Pakistan and Iran reported progress toward peace, while Washington expanded sanctions and warned against business with Tehran. US crude inventories rose by 4.2 million barrels last week.