Oil prices slip as Iran-Oman talks ease Strait of Hormuz supply fears

Crude oil prices fell on Wednesday as hopes grew that Iran and Oman could reach a deal on a temporary corridor through the Strait of Hormuz, easing fears of prolonged disruption to global oil supplies. The talks between Iran and Oman have raised expectations that shipping activity through the strategic waterway could gradually normalise, weighing on crude prices. However, conflicting assessments of actual oil volumes passing through the strait have added uncertainty to the market outlook. The US Energy Secretary said more than 15 million barrels moved through the waterway in one day, while the seven-day average was estimated at over 8 million barrels per day. Any sustained reopening could reduce the risk premium in crude prices, while renewed escalation could reverse recent declines.