Dhaka, August 5 (V7N)- Global oil prices fell sharply on Tuesday after signs of progress in diplomatic efforts to restore shipping through the Strait of Hormuz, easing concerns over supply disruptions in one of the world's most critical energy transit routes.
Brent crude dropped nearly 5 percent to below $80 per barrel, its lowest level in three weeks. Meanwhile, U.S. West Texas Intermediate (WTI) crude also declined by more than 5 percent to around $76 per barrel, marking its lowest price since July 13.
The decline followed comments by U.S. Secretary of State Marco Rubio, who said discussions involving Iran and Oman had made progress toward normalizing maritime traffic through the Strait of Hormuz. While no final agreement has yet been reached, Rubio expressed optimism that a deal could be concluded in the near future.
Iran, however, denied holding direct negotiations with the United States. Tehran said its discussions with mediator Oman regarding a new framework for shipping through the Strait of Hormuz had been constructive.
The Strait of Hormuz remains at the center of ongoing regional tensions. Before the conflict that escalated in late February, nearly one-fifth of the world's daily oil and liquefied natural gas (LNG) supplies passed through the strategic waterway.
Since the conflict began, Iran has restricted much of the commercial shipping through the strait, while the United States has maintained a naval blockade around Iranian ports in the region.
At the same time, Yemen's Iran-backed Houthi movement has, since July 20, disrupted access to Saudi Arabia's Red Sea ports. The Red Sea route had become a key alternative following restrictions in the Strait of Hormuz, but renewed attacks on commercial vessels last week have raised fresh concerns over the security of global energy supply chains.
According to the BBC, hopes for a diplomatic breakthrough have helped ease fears of prolonged supply disruptions, contributing to the latest decline in international oil prices.
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