Global oil prices extended losses on Wednesday as Brent crude futures fell 2.5% to $86.38 a barrel by 07:43 GMT, while U.S. WTI dropped 2.8% to $80.08, marking a two-day decline of more than $6 a barrel. The pullback followed resumed negotiations between Iran and Oman aimed at stabilizing shipping through the Strait of Hormuz, a critical chokepoint for oil and LNG shipments.
Asian energy stocks led declines as crude prices tumbled. In Australia, the S&P/ASX 200 Energy sub-index slipped 1.5%, its steepest one-day drop in nearly a month, with Woodside Energy down 4% and Santos nearly 2%. South Korea’s SK Innovation slumped 11%, while Japan’s Eneos Holdings and Japan Petroleum Exploration each fell more than 2%.
European energy majors also retreated, with BP down 2.8%, Shell 1.7%, Equinor 2.5%, Eni 1.7%, TotalEnergies 1.2%, and Repsol 1.4%. The declines followed Tuesday’s 3.1% drop in WTI crude, which capped a two-day slump exceeding $6 a barrel.
Talks between Iran and Oman focus on establishing an interim framework for navigation through the Strait of Hormuz, including a temporary corridor and mine-clearing cooperation. Before recent disruptions, the strait accounted for roughly one-fifth of global oil and LNG shipments. Analysts caution that a permanent resumption of flows remains uncertain amid broader geopolitical tensions, including stalled U.S.-Iran negotiations and heightened economic pressure on Tehran.
PVM analyst Tamas Varga noted that while supply risks persist, oil inventories are likely to continue depleting in the coming weeks, keeping market volatility elevated.
