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

U.S. oil prices declined on Wednesday, continuing their downward trend from the prior session, as traders anticipated the possible reopening of the Strait of Hormuz. Iran announced it had resumed discussions with Oman regarding the management of the crucial waterway. West Texas Intermediate crude futures dropped $1.37, or 1.7%, to $80.99 per barrel by 2240 GMT.

The contract had declined 3.1% on Tuesday, hitting its lowest level since August 13. Iran's decision to restart talks with Oman comes amid increased economic pressure from U.S. President Donald Trump's administration. Iran and Oman have been engaged in intermittent negotiations for weeks about controlling passage through the Strait, which accounted for one-fifth of global oil and liquefied natural gas shipments prior to the conflict in February.

The U.S. recently broadened sanctions to target Iran's economy, threatening penalties for countries that continue trade with Iran, though it did not impose immediate sanctions.