Oil prices slide 2% on Iran-Oman talks to reopen Strait of Hormuz

Oil prices declined 2% on Wednesday after Iran and Oman discussed reopening the Strait of Hormuz. Brent crude futures fell 74 cents, or 0.84%, to $87.84 a barrel, while West Texas Intermediate crude futures dropped 13 cents, or 0.16%, to $82.23. The decline came as investors awaited details of the talks and a U.S. crude inventory report showing a smaller-than-expected rise in stocks.

Analysts noted the market's shift from expecting prolonged disruptions to anticipating partial reopening and lower military risk. The talks involved Iran and Oman finalizing details to share the strait's waterway and revenues. In other news, Pakistan and Iran recently made significant progress in talks, while Russia's largest oil refinery suspended processing after a Ukrainian drone attack.