FX.co ★ Oil Declines for Third Straight Session

Crude oil prices fell to around $81 per barrel on Wednesday, extending losses for a third straight session after reports that Iran and Oman discussed creating a “temporary joint maritime corridor” in the Strait of Hormuz. Technical talks between the two countries are expected to continue as they work toward a permanent corridor that would address future governance of the strait, information-sharing protocols, traffic management, and the provision of maritime and security services. At the same time, Pakistan’s army chief visited Tehran to support diplomatic initiatives, while Qatar said it was continuing its mediation efforts. Oil has come under pressure this week after Washington’s latest steps to increase economic pressure on Iran were seen as milder than anticipated, with the US refraining from imposing secondary sanctions on Iran’s trading partners.