3 weeks ago

Oil Prices Slip as Iran-Oman Talks Raise US-Iran Peace Hopes

Oil Prices Slip as Iran-Oman Talks Raise US-Iran Peace Hopes
Oil Prices Slip Below $80 Per Barrel As Iran-Oman Talks Raise Hopes Of US-Iran Deal · freepressjournal.in

Oil is a special liquid that powers cars, planes, and many machines, and countries buy and sell it around the world.

When people worry that oil might become hard to get, its price usually goes up.

This week, oil became a little cheaper on Thursday.

That is because Iran and Oman have been talking, and their talks made people hope that Iran and the United States might stop fighting.

The two countries have been in a conflict for five months, and a peace deal could let ships safely use an important water path called the Strait of Hormuz, where a lot of the world's oil travels.

A proposed agreement could let Iran watch over ships going through that waterway, and President Donald Trump said a deal to reopen it was close.

But some US officials said America would not agree to let Iran control that important route.

There are still worries, because Iran warned that fresh US attacks could lead to retaliation against oil facilities, and rebels in Yemen said they fired missiles at Saudi oil tankers.

So the price of oil went down a little, but people are still watching to see what happens next.

Key facts

Brent crude price
$79.08 per barrel, down 37 cents (0.5%)
WTI crude price
$74.69 per barrel, down 53 cents (0.7%)
US-Iran conflict duration
Five months
Strait of Hormuz status
Proposed Iran-Oman deal could let Tehran oversee transiting ships; Trump says a deal is close, but US officials oppose Iranian control
Houthi attacks
Missile attacks claimed on Saudi oil tankers near Yanbu and in the Gulf of Aden; unconfirmed by Saudi authorities
US crude oil inventories
Rose by 2.5 million barrels to 407 million barrels in the week ended July 31 (EIA), versus an expected 1.5 million-barrel decline
Iran's warning
Renewed US military action would prompt retaliation against critical energy infrastructure across the Gulf region
Market reference point
Prices moved back toward levels seen after the US-Iran interim peace agreement of June 17

Sources

Related news