Oil prices held near their lowest levels in weeks after Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising hopes that crude flows through one of the world's busiest energy corridors could gradually resume.
Brent crude traded near $79 a barrel, while West Texas Intermediate hovered around $75, after both benchmarks tumbled about 11% over the first three trading sessions of the week. The latest decline reflects growing optimism that a diplomatic breakthrough could ease disruptions in the Strait of Hormuz, a key chokepoint that carries roughly a fifth of global oil supplies.
Iranian officials said a joint statement with Oman is under review and that the proposed shipping corridor could remain operational for two to four months. While the arrangement does not amount to a full reopening of the waterway, it marks the clearest sign yet that energy shipments may begin recovering after weeks of conflict-driven disruptions.
The development comes as US President Donald Trump said Washington remains in talks with Tehran, telling supporters at a rally that negotiations are continuing and that "we'll see what happens." His comments reinforced market expectations that a broader agreement could be within reach.
Even so, traders remain cautious. Iran-backed Houthi militants claimed they had targeted a Saudi oil tanker in the Gulf of Aden and threatened additional vessels in the Red Sea, highlighting that security risks to regional shipping remain elevated.
Fresh US inventory data also weighed on prices. Crude stockpiles rebounded from their lowest level since 2018, while inventories at the Cushing, Oklahoma delivery hub climbed back above the 20 million-barrel threshold widely viewed as the minimum operating level. At the same time, diesel exports rose to a record high.
ALSO READ: Iran Says Agreement Reached With Oman For New Shipping Lanes In Hormuz
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