Iran has reached an agreement with Oman regarding a proposed shipping route through the Strait of Hormuz, a development that raises the prospect of some energy flows resuming through the critical waterway.
The announcement comes as oil prices held onto losses, extending a three-day decline driven by easing geopolitical tensions in the region.
Brent crude and WTI benchmarks continued their downward trajectory, dropping approximately 1% on Wednesday.
Brent crude and WTI benchmarks continued their downward trajectory, dropping approximately 1% on Wednesday.
This move extends a broader sell-off that saw oil prices fall more than 4% in early trading Monday after reports emerged of a diplomatic agreement between the United States and Iran.
The market is digesting the cumulative effect of these diplomatic breakthroughs, which are expected to lift restrictions on maritime traffic and reduce the risk premium embedded in energy prices.
The Iran-Oman accord adds a new layer to the de-escalation arc that has dominated energy markets in recent weeks.