Oil Sinks Further as Oman Floats a Hormuz Deal
Oil fell sharply again, with Brent crude dropping around 5 per cent to about $83 a barrel, as the pause in the US–Iran war held and mediators pressed for a deal to reopen the Strait of Hormuz. Oman was reported to have handed Tehran a proposal for joint control of the strait with voluntary transit fees. Markets shrugged off an overnight drone strike on a Saudi oil plant, judging the wider de-escalation more important.
The retreat unwound much of the war-risk premium that had driven crude towards $100 only days ago, offering relief to consumers and easing the inflationary threat to central banks. The sticking point in the talks is whether fees for safe passage through Hormuz — the world’s most important oil chokepoint — would be mandatory or voluntary; Iran is said to have rejected a separate US proposal on frozen funds. President Trump spoke of a “good chance” of progress but has threatened to resume strikes if the talks stall. Watch the oil price and whether the Hormuz proposal gains traction.