U.S. West Texas Intermediate crude futures declined 1.7% to $80.99 per barrel in early trade on Wednesday, extending losses from the prior session as prospects of easing tensions in the Strait of Hormuz lifted supply expectations.
The contract had already fallen 3.1% on Tuesday, closing at its lowest level since August 13, reflecting growing optimism over potential negotiations between Iran and Oman. The two nations resumed talks this week aimed at managing traffic through the strategic waterway, which previously handled roughly one-fifth of global oil and liquefied natural gas shipments before regional hostilities escalated in February.
Iran’s engagement with Oman follows recent U.S. sanctions measures targeting Tehran’s economic infrastructure. On Monday, the U.S. expanded penalties designed to restrict Iran’s financial access, though it deferred immediate enforcement while warning of future punitive actions against countries continuing to engage economically with the Islamic Republic.
