Iran-Oman Hormuz Talks Near Final Stage; WTI Slumps More Than 7% Intraday

Iran and Oman are in the final stage of talks on ensuring safe passage for ships through the Strait of Hormuz, a development that fueled hopes for easing tensions in the Middle East and sent oil prices sharply lower.

BlockBeats, a media outlet focused on digital assets, reported on August 3 that Iran's Foreign Ministry said its negotiations with Oman over the Strait of Hormuz had entered the "final stage."

Foreign Ministry spokesman Esmail Baghaei said the talks were not direct discussions with the US. Rather, they are talks between Iran and Oman to establish a temporary route for vessels to pass safely through the strait.

On the news, West Texas Intermediate crude tumbled more than 7% intraday. Brent crude fell more than 5% to around $83 a barrel.

The Strait of Hormuz remains effectively closed. Iran and Oman are discussing reopening a so-called middle corridor, but the area may have been mined, meaning clearance work would be needed before normal shipping can resume. For now, only some authorized vessels are using designated routes.

Iran also said there would be no major change in conditions in the strait as long as US military action continues.

Earlier, President Donald Trump said an agreement to reopen the Strait of Hormuz was close and that he had canceled a planned military strike after diplomatic efforts by Gulf states. He said any deal must include the full reopening of the strait and a resolution to Iran's nuclear issue.