Crude oil prices fell toward $75 per barrel on Wednesday, extending losses for a third straight session and bringing the weekly decline to more than 10%, as optimism grew over a potential deal to reopen the Strait of Hormuz. On Tuesday, Qatar announced that an interim proposal had been drafted, and both Washington and Tehran signaled that talks to restore access to the critical waterway were making headway.
President Donald Trump had earlier called off planned military strikes against Iran to give diplomacy a chance, while reiterating his demand for the swift reopening of Hormuz. Meanwhile, Iran is reportedly considering a proposal that would allow European countries to clear mines from the strait and said its discussions with Oman on securing safe shipping routes were progressing.
At the same time, Saudi Arabia has continued indirect talks with Yemen’s Houthi militants via Omani mediators in an effort to prevent further escalation of the conflict in the Red Sea.
