Oil prices fall as US-Iran diplomatic efforts resume, Strait of Hormuz reopening discussed

This renewed diplomacy eased concerns about prolonged disruptions to oil supplies from the Middle East. The Strait of Hormuz, a crucial shipping route for approximately one-fifth of the world's crude, had been reclosed after an exchange of strikes between the two nations. Iran proposed a temporary arrangement to Oman for reopening the Strait of Hormuz, suggesting that one direction of maritime traffic pass through Iranian waters, with part of the opposite route also transiting Iranian territory.

However, Iran's Deputy Foreign Minister, Kazem Gharibabadi, stated that Tehran rejected Oman's proposal for an equal division of transit routes, citing security concerns. He warned that the Strait of Hormuz would remain closed if Muscat did not accept Iran's proposal. Meanwhile, US President Donald Trump indicated that negotiations with Iran were progressing but warned of potential military action if diplomacy failed.

Trump stated that he would prefer to avoid further strikes but threatened to target Iran's key infrastructure, including power plants, bridges, and the "Kolang Mountain" nuclear facility, if an agreement was not reached. He also claimed that previous American strikes had significantly degraded Iran's nuclear program by hitting facilities in Natanz, Fordow, and Isfahan during last year's conflict.