Oil prices slide as US-Iran talks raise hopes for Hormuz reopening
Photo: Oil prices had remained at peak levels for an extended period (Getty Images)
Oil prices continued to decline after statements about progress in negotiations between the US and Iran on extending the ceasefire and the possible reopening of the Strait of Hormuz, according to Bloomberg.
According to the report, WTI crude traded near $91 per barrel after a sharp drop earlier this week.
The outlet recalls that US President Donald Trump said negotiations were “going well,” but warned of new attacks if the talks fail.
According to Bloomberg, the chief mediator in the negotiations — Pakistan’s army chief — informed China that a deal between the sides is already close.
At the same time, the oil market is reacting to the possible easing of the crisis around the Strait of Hormuz — a key route through which nearly one-fifth of global oil and liquefied natural gas supplies passed in peacetime.
At present, the strait effectively remains closed due to blockades by both the US and Iran.
Separately, Trump stated that Iran’s enriched uranium must either be destroyed or transferred to the United States.
As known, Washington continues to insist that Tehran’s nuclear program poses a threat because of the possible development of nuclear weapons.
