West Texas Intermediate crude futures fell 0.5% to $81.83 a barrel at 00:51 UTC on Wednesday, extending a four-day losing streak that has erased roughly 6% of value over the prior sessions.
The decline follows reports of tentative diplomatic progress in the Strait of Hormuz, a critical chokepoint that historically supplied about 20% of global crude oil flows before regional conflicts escalated. While current transit volumes remain well below pre-war levels, any easing of tensions could support supply stability in the Persian Gulf.
Iran and Oman were cited in reports as having reached an agreement on commercial shipping routes through the strait, though Iranian officials cautioned that the pact did not necessarily imply an immediate reopening of the waterway. Tehran also accused the United States of obstructing the arrangement.
U.S. sanctions on Iran, recently tightened, drew condemnation from Tehran, which warned of retaliatory measures. Meanwhile, Russian state media reported a new ceasefire agreement between Washington and Tehran expected to be announced in the coming days, adding to market uncertainty.
Regional mediation efforts continued as Pakistan signaled progress in its own peace negotiations with Iran, positioning itself as a key intermediary in the broader diplomatic push.
