US oil prices extend losses on hopes of Iran-Oman talks on Strait of Hormuz

U.S. oil prices continued their downward trend on Wednesday, as markets reacted favorably to news of potential talks between Iran and Oman regarding the Strait of Hormuz. West Texas Intermediate crude futures tumbled $1.37, or 1.7%, to $80.99 per barrel, marking their second consecutive daily decline. The contract had plummeted 3.1% on Tuesday, reaching its lowest level since August 13.

Iran's decision to engage in renewed dialogue with Oman comes as the country faces mounting economic pressure from U.S. President Donald Trump's administration. The two nations have been intermittently discussing the management of the strategically vital waterway, which traditionally handles one-fifth of global oil and liquefied natural gas shipments.

In response to Iran's economic isolation, the U.S. recently expanded its sanctions to target countries still engaging in trade with the Islamic Republic, though it refrained from imposing immediate penalties on violators.