Oil prices fall 2% as Iran and Oman resume Strait of Hormuz talks

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 losses extended Tuesday's decline of more than 3%, with analysts attributing the selling to progress in Iran-Oman discussions on a joint temporary navigational corridor and mine clearance. Uncertainty over the outlook prompted some bargain buying, limiting further losses. The strait handled one-fifth of global oil and liquefied natural gas shipments before the war began in February. The U.S. is sending personnel back to some Middle East diplomatic missions, suggesting lower escalation risk, while an oil tanker was struck near Oman on Tuesday.