Kashmir Impulse Desk
New Delhi, Aug 5
Oil prices fell on Wednesday as signs of progress in indirect talks between the United States and Iran raised expectations that commercial shipping through the Strait of Hormuz could resume.
Qatar’s foreign ministry said negotiations had reached a “very progressive stage” through intermediaries, although no direct talks between Washington and Tehran were under way.
US President Donald Trump said the strategic waterway would reopen “very soon” and described discussions with Iran as positive, while Secretary of State Marco Rubio said negotiations had advanced despite no final agreement.
Iran denied holding direct talks with Washington, saying discussions were instead taking place with Oman, which is acting as a mediator.
The US military said the southern route through the Strait remained open for commercial shipping, although security concerns persisted following reports of an incident involving a cargo vessel and warnings over declining US interceptor missile stockpiles.
Brent crude fell nearly 5 percent on Tuesday to below USD 80 a barrel before extending losses in Asian trade on Wednesday, while US West Texas Intermediate crude also declined as hopes of easing tensions reduced concerns over supply disruptions.
Analysts cautioned that previous diplomatic efforts had failed, leaving uncertainty over the outlook for global energy markets.
