Oil steadies as negotiations over the Strait of Hormuz make progress

Oil prices were little changed during Wednesday's trading as reports indicated that the United States, Iran, and Oman continue to negotiate an agreement aimed at regulating shipping through the Strait of Hormuz.

In trading, global benchmark Brent crude futures rose 7 cents to $79.43 a barrel, while US West Texas Intermediate (WTI) crude futures fell 50 cents to $75.27 a barrel.

Progress in negotiations

Regional sources said the ongoing negotiations are focused on a temporary arrangement under which vessels entering the Gulf would transit through Iranian territorial waters, while outbound ships would pass through Omani waters in coordination with Tehran.

Speaking in an interview with Fox News on Tuesday evening, US President Donald Trump said negotiations had continued throughout the day, adding, "Things seem to be going very well."

US Treasury Secretary Scott Bessent also told CNBC that an agreement to reopen the strategic waterway, a critical artery for transporting oil, natural gas, fertilizers, and a wide range of industrial products, could be reached later this week.

The United States and Iran signed a memorandum of understanding on June 17 aimed at reopening the Strait of Hormuz. However, the agreement quickly collapsed after renewed fighting over shipping routes through the waterway.

According to the report, Tehran targeted vessels sailing alongside Oman's coastline under US military protection in an attempt to force them to transit through Iranian territorial waters. Washington responded by launching more than 12 waves of airstrikes while reimposing its naval blockade on Iran.