Brent Near Lows as Markets Eye Iran Agreement

Brent crude oil fluctuated below $80 per barrel on Wednesday, after losses of around 5% in each of the previous two sessions, as investors grew increasingly optimistic that a deal to reopen the Strait of Hormuz could soon be reached. According to Axios, the US, Iran and Oman are close to a 60-day interim agreement to reopen the waterway without tolls, with Washington aiming to announce the deal as early as Wednesday. US President Donald Trump also struck an optimistic tone, saying negotiations with Tehran were moving along very nicely and that more would be known within 48 hours. Meanwhile, Qatar said an interim proposal had been drafted, while reports indicated Iran was considering allowing European countries to clear mines from the strait. Meanwhile, Yemen's Houthis said they had attacked a Saudi vessel in the Red Sea. Still, prices remained well below recent highs.

Brent crude oil rose to around $80 per barrel on Wednesday, snapping a two-day decline after Yemen's Houthis said they had attacked a Saudi vessel in the Red Sea. Still, prices remained well below recent highs as investors grew increasingly optimistic that a deal to reopen the Strait of Hormuz could soon be reached. According to Axios, the US, Iran and Oman are close to a 60-day interim agreement to reopen the waterway without tolls, with Washington aiming to announce the deal as early as Wednesday. US President Donald Trump also struck an optimistic tone, saying negotiations with Tehran were moving along very nicely and that more would be known within 48 hours. Meanwhile, Qatar said an interim proposal had been drafted, while reports indicated Iran was considering allowing European countries to clear mines from the strait. Separately, Saudi Arabia reportedly held talks with Yemen's Houthi movement through Omani mediators in an effort to prevent the conflict from escalating.

Brent rose above $80 per barrel on Wednesday, but held most of the losses from the previous two sessions as optimism grew over a potential interim agreement to reopen the Strait of Hormuz, boosting the supply outlook. On Tuesday, Qatar said an interim proposal had been prepared and both Washington and Tehran indicated that negotiations to restore access to the vital waterway were making progress. President Donald Trump had earlier called off planned military action against Iran to give diplomacy a chance, while reiterating his demand for the swift reopening of Hormuz. Meanwhile, Iran is reportedly weighing a proposal to allow European countries to clear mines from the strait and said discussions with Oman on securing safe shipping routes were advancing. Saudi Arabia also continued talks with Yemen’s Houthi militants through Omani mediators in an effort to keep the conflict in the Red Sea from escalating further.