Global oil prices fell for the third consecutive day on Wednesday, with Brent crude settling at $86.28 per barrel as investors grew more hopeful about efforts to maintain shipping through the Strait of Hormuz.
Reports said concerns over global oil supplies eased after Iran and Oman discussed a framework for establishing a temporary maritime route through the Strait of Hormuz.
Brent crude futures ended the day at $86.28 per barrel, while US West Texas Intermediate (WTI) crude settled at $80.29 per barrel.
The Strait of Hormuz is one of the world’s most important energy shipping routes, carrying large volumes of crude oil and other energy products each day.
The latest diplomatic developments have raised hopes among investors that a practical arrangement could be reached to keep global oil supplies moving despite tensions in the region, putting downward pressure on prices.
However, market experts cautioned that restoring safe and regular maritime traffic through the Strait of Hormuz would not be easy. Security concerns, political complexities and the broader regional situation could pose challenges to any temporary arrangement.
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Analysts said oil prices in the coming days will largely depend on developments in the region, the restoration of shipping through the Strait of Hormuz and further diplomatic progress involving Iran and other parties.
