Oil prices fell early-Thursday, extending their decline into a fourth consecutive session as markets held out hopes for improving supplies from the Middle East.

A report said Iran and Oman had reached an agreement on commercial shipping routes through the Strait of Hormuz, although Tehran warned that an agreement may not entail an immediate reopening of the crossing.

West Texas Intermediate crude futures fell 0.5% to $81.83 a barrel by 19:51 ET (23:51 GMT) after wiping out some 6% in the past three sessions.

Crude fell sharply this week despite the U.S. imposing stricter sanctions on Iran. Tehran had largely decried the measures and warned of retaliation.

But other reports pointed to some improvement in U.S.-Iran relations. Russian state media reported that the two had reached a new ceasefire deal that would be announced in the coming days.

Separately, Pakistan– a major regional mediator– also flagged progress in peace talks with Iran.

But shipping data showed flows through Hormuz remained at a fraction of pre-war levels. The channel supplied roughly 20% of the world’s crude prior to the conflict, and has become a flashpoint in the U.S.-Iran war.

Iran accused the U.S. of obstructing an agreement with Oman to reopen Hormuz, local media reported on Wednesday.

Source: Investing.com

#latestnews #theshippingtribune #pilnews #oilprice