Crude oil prices retreated toward $80 per barrel on Wednesday, extending losses into a third straight session after reports that Iran and Oman had discussed creating a “temporary joint maritime corridor” in the Strait of Hormuz. Technical negotiations between the two countries are set to continue as they work toward establishing a permanent maritime corridor that would govern the future management of the strait, including information-sharing arrangements, traffic management, and the provision of maritime and security services.
At the same time, Pakistan’s army chief traveled to Tehran in support of diplomatic efforts, while Qatar said it was continuing its mediation. Oil prices have faced downward pressure this week after Washington’s latest steps to tighten economic pressure on Iran proved less stringent than markets had anticipated, with the US opting not to introduce secondary sanctions on Iran’s trading partners.
