NEW DELHI: Oil prices edged lower on Thursday as investors weighed whether progress in Iran-Oman talks could pave the way for a US-Iran peace deal, potentially ending the five-month conflict and reopening the Strait of Hormuz.Brent crude futures fell 37 cents, or 0.5%, to $79.08 a barrel, while US West Texas Intermediate (WTI) crude declined 53 cents, or 0.7%, to $74.69 a barrel. Earlier on Wednesday, Brent had settled slightly higher, while WTI ended marginally lower after recovering from two sessions of sharp losses.Market sentiment remains focused on diplomatic efforts to end the conflict after reports that Iran and Oman are working on a proposal aimed at resolving tensions between Tehran and Washington.According to Reuters, the proposed agreement would give Iran control over ships entering the Gulf through the Strait of Hormuz, marking one of the biggest concessions discussed so far. However, US officials have repeatedly maintained that Washington would never agree to Iran controlling access to the strategic waterway, despite President Donald Trump‘s recent claim that a deal to reopen the strait was imminent.The Strait of Hormuz carries nearly a fifth of the world’s oil supplies, making any disruption or reopening crucial for global energy markets.Meanwhile, geopolitical risks remain elevated. Iran has warned Gulf countries that any fresh US military strike on its territory would trigger retaliatory attacks on critical energy infrastructure across the region.Adding to supply concerns, Yemen’s Iran-backed Houthi rebels claimed on Wednesday that they had launched missile attacks on two Saudi oil tankers, one near the Red Sea port of Yanbu and another in the Gulf of Aden. However, Saudi Arabia has not confirmed either incident.On the supply front, fresh US inventory data also weighed on prices. The US Energy Information Administration (EIA) said crude oil inventories rose by 2.5 million barrels to 407 million barrels in the week ended July 31, compared with analysts’ expectations of a 1.5 million-barrel decline. The increase came as refinery activity eased slightly and crude imports edged higher.
