WTI slips below $81.50 amid Middle East diplomacy

West Texas Intermediate (WTI) oil price dropped below $81.50 per barrel on Thursday, following a slight increase in the previous day. The decline in WTI prices was attributed to signs of diplomatic progress in the Middle East, particularly the agreement between Iran and Oman regarding their respective shares in the Strait of Hormuz's waters and revenues.

However, Iran expressed caution, stating that reopening the vital waterway would need more than just an agreement with Oman. US President Donald Trump claimed that 10 million barrels of oil had passed through the Strait on Tuesday, reiterating his belief that mines in the waterway had been cleared. The recent easing of US economic sanctions on Iran also contributed to the downward pressure on oil prices, as they were less severe than anticipated by the market.

The White House thus far has refrained from imposing additional sanctions on Iran's trading partners. Meanwhile, US crude inventories rose by less than expected last week, increasing by 95,000 barrels to 428.9 million barrels, which softened the impact of the oil price decline.