Oil prices continued their gradual but steady decline for the 4th consecutive session on Thursday (27/08), as significant signs of diplomatic progress emerged on the Middle East front. Brent crude is retreating toward the $87 per barrel mark, while the American benchmark WTI crude is approaching $81 per barrel, against the backdrop of ongoing developments in the Middle East.
Notably, Iran and Oman have reached an agreement on each country’s share of the waters of the Strait of Hormuz and the associated revenues, although Tehran has warned that reopening the critical waterway would require more than just an Iran-Oman deal.
Meanwhile, Donald Trump stated that 10 million barrels of oil passed through Hormuz on Tuesday (25/08), while reiterating his claims that mines in the waterway had been cleared.
Modest decline in oil prices
Oil prices have also come under pressure this week after new US economic sanctions on Iran proved less aggressive than markets had feared, with the White House so far sparing Iran’s trading partners from stricter measures.
Markets are also being influenced by developments on the Ukraine front. Russian President Vladimir Putin is reported to have been planning an escalation in Ukraine, keeping risks to global energy supply firmly in the spotlight.
