Oil prices fall 2% as Iran-Oman talks aim to reopen Strait of Hormuz

Oil prices fell about 2% on Wednesday after Iran resumed talks with Oman on managing the Strait of Hormuz, raising hopes the key waterway could reopen. Brent crude dropped to $86.80 a barrel, while US West Texas Intermediate fell to $80.87. The talks follow weeks of on-and-off discussions between the two countries on controlling traffic through the strait, which handled one-fifth of global oil and LNG shipments before the war began in February. They discussed a joint temporary navigational corridor and agreed to clear mines, though uncertainty over the outlook has prompted bargain buying, limiting further losses. The US is sending personnel back to some Middle East diplomatic missions, suggesting lower escalation risk, while expanding sanctions on Iran without immediate penalties. An oil tanker was struck by an unidentified projectile near the strait, and US crude inventories reportedly rose more than expected.