US oil prices extended losses in early trade on Wednesday amid hopes that the Strait of Hormuz could reopen after Iran said it had resumed talks with Oman on managing traffic through the strategic waterway.
West Texas Intermediate (WTI) crude futures fell US$1.37, or 1.7%, to US$80.99 as of 2240 GMT, after sliding 3.1% on Tuesday to settle at their lowest level since Aug 13.
The decline came after Iran said it had restarted talks with Oman on managing the Strait of Hormuz as Tehran faces heightened economic pressure from US President Donald Trump.
The waterway, which handled about one-fifth of global oil and liquefied natural gas shipments before the war began in February, has become a key focus for energy markets amid concerns over disruptions to global supplies.
The United States on Monday expanded sanctions aimed at cutting off Iran’s economic lifeline, threatening to punish countries that continue to do business with Tehran, although Washington said penalties would not be imposed immediately.
The latest developments have eased some concerns over a prolonged disruption to oil flows through the Strait, putting further pressure on crude prices.
Reuters
