Oil prices slip as Iran hints at Strait of Hormuz reopening

Oil prices fell Tuesday after Iran signaled it could reopen the Strait of Hormuz within seven days if the US reduces military pressure, easing supply fears. Brent crude dropped 0.89% to $99.45 a barrel, while the October WTI contract fell 1.14% to $94.69. The offer, reported by Kyodo News, is part of Iran's efforts to restart negotiations with Washington. Analysts say the development suggests diplomatic progress, though other issues like tolls and fees remain unresolved. Saudi Aramco has increased Hormuz exports after pipeline attacks, while Libya's Sharara oilfield production fell by 200,000 barrels per day due to a valve closure. Despite the decline, analysts see limited further downside until actual supply increases through the strait. Refined fuel shortages persist, with diesel prices at record highs in Europe and the US. Market direction depends on concrete shipment evidence and the broader Middle East conflict.