ISLAMABAD: Global oil prices declined for a third consecutive day on Wednesday, with Brent crude settling at $86.28 per barrel and US West Texas Intermediate (WTI) crude closing at $80.29 per barrel.
The decline came amid reports that Iran and Oman are discussing a framework for establishing a temporary maritime route through the Strait of Hormuz, easing some concerns over disruptions to global oil supplies.
The Strait of Hormuz is one of the major energy passageways in the world where huge amounts of crude oil and other energy resources transit daily. A long-term disruption to the movement of ships through the waterway could place tremendous pressure on global energy markets.
The talks reportedly being held by Iran and Oman have sparked hopes among market investors that an agreement could be reached to maintain energy flows despite the continued tension in the region.
The hope of maintaining or restoring the passage through the Strait of Hormuz has placed downwards pressure on oil prices for the third straight day.
However, experts warn that it would not be easy to restore the safety and regular flow of shipments through the strategic waterway.
Security issues, regional tension, and politics could pose obstacles in the implementation of any temporary deal.
Market analysts said that the future trend of oil prices would mainly depend upon how things progress in the region and how the shipping through the Strait of Hormuz could be restored.
At least for now, the latest diplomatic gestures have brought relief to the markets worried about a long-term disruption in the global energy supplies.
