Oil slides as Iran-Oman Hormuz talks raise hopes of easing tensions

Global crude oil prices slid for a third straight day on Wednesday, following reports that Iran and Oman were negotiating a temporary maritime corridor through the strategic Strait of Hormuz. The dip in oil prices, with Brent crude falling to around US$87 per barrel and WTI sliding to about US$81, reflected a hopeful sentiment that tensions around the vital energy route may ease.

The proposed framework for the joint maritime corridor would encompass information-sharing, traffic management, and maritime security services. Diplomatic efforts were bolstered by Pakistan's army chief traveling to Tehran and Qatar continuing its mediation role. Meanwhile, US economic pressure on Iran softened, avoiding secondary sanctions on countries trading with Iran.

The US dollar index steadied near 99, buoyed by safe-haven demand amid Washington's efforts to cut Iran off from the global financial system. Despite a slight dip, the dollar remained near three-month lows, as markets remained cautious about the effectiveness of the expanded Treasury buyback program aimed at curbing borrowing costs.

Investors now focus on upcoming US Personal Consumption Expenditures data and Federal Reserve Chairman Kevin Warsh's remarks at the Jackson Hole symposium for insights into US monetary policy.