Global oil prices moved lower on Thursday as investors responded to reports of progress in Iran Oman negotiations. The market also reacted to expectations of a broader agreement involving the United States and Iran.
Brent crude futures fell by 37 cents to $79.08 per barrel during early trading. Meanwhile, U.S. West Texas Intermediate crude declined by 53 cents and reached $69.74 per barrel.
The price decline reflected improving market sentiment regarding regional stability. Traders reduced risk premiums because they expected diplomatic progress to ease supply concerns. Consequently, energy markets shifted their attention from geopolitical risks toward ongoing negotiations.
The latest reports suggested Iran and Oman continued discussions aimed at advancing regional diplomatic efforts. At the same time, investors monitored signs that Washington and Tehran could eventually reach a broader agreement to end recent hostilities. Such a deal could also support the reopening of the Strait of Hormuz for normal shipping.
The Strait of Hormuz remains one of the world’s most important energy corridors. Nearly one-fifth of global oil shipments pass through the strategic waterway every day. Therefore, any improvement in regional security can quickly influence international oil prices.
Yuuki Takashima, an economist at Nomura, said traders increased selling activity after reports indicated progress in the negotiations. He explained that investors responded by reducing positions built during recent geopolitical tensions.
Takashima added that current prices have largely returned to levels seen after the temporary U.S.-Iran agreement reached on June 17. However, he noted that financial markets continue watching diplomatic developments closely before making larger investment decisions.
Energy analysts believe negotiations remain the main driver of short-term oil price movements. Nevertheless, they also expect volatility to continue until officials announce a final agreement. As a result, traders will likely react quickly to every new political statement or diplomatic update.
Looking ahead, investors will monitor negotiations between Iran, Oman, and the United States for further progress. Any breakthrough could reduce supply risks, while setbacks may quickly push crude prices higher again.