Oil prices fell for a fourth consecutive session on Aug. 27 as talks between Iran and Oman raised hopes that more energy shipments could move through the Strait of Hormuz.
Brent crude traded near $87 a barrel and was down more than 7 percent for the week.
Iran’s Revolutionary Guards said on Aug. 26 that the two countries had reached an understanding over their respective shares of the waterway and any revenue it generates.
“During negotiations with Oman, some agreements were made regarding each country’s share of the waters of the Strait,” Guards spokesman Hossein Mohebi said, adding that the talks also covered revenues.
However, a joint statement issued after the countries’ foreign ministers met a day earlier did not refer to revenue sharing. It said the two sides had discussed a phased framework for a temporary navigational corridor and a joint mine-clearing project.
Technical talks will continue on a permanent corridor, traffic management and the future administration of the strait, the statement said.
“The market has started pricing in the possibility of another ceasefire emerging,” said Saul Kavonic, senior energy analyst at MST Marquee.
Kavonic said crude was in a holding pattern as traders awaited confirmation that an agreement could be reached following several failed ceasefire efforts.
Prices also came under pressure after new U.S. economic measures against Iran and its trading partners were seen as less severe than markets had expected.
Crude had briefly risen on Aug. 26 following a report that Russian President Vladimir Putin was preparing to escalate the war in Ukraine, before giving up those gains after the Iranian announcement.
Gold, meanwhile, traded around $4,600 an ounce, supported by concerns over U.S. debt and the dollar. Gram gold in Türkiye was near 7,100 liras.
