US oil prices extend losses on hopes of Iran-Oman talks on Strait of Hormuz

By Yuka Obayashi

TOKYO, Aug 26 (Reuters) – U.S. oil prices fell in early trade on Wednesday, extending the previous session’s losses, on hopes the Strait of Hormuz could reopen after Iran said it had resumed talks with neighbour Oman on managing the strategic waterway.

U.S. West Texas Intermediate crude futures fell $1.37, or 1.7%, to $80.99 as of 2240 GMT. The contract lost 3.1% on Tuesday, settling at its lowest since August 13.

Iran said it had restarted talks with Oman to manage the Strait as it faces heightened economic pressure from U.S. President Donald Trump.

Iran and Oman have been in on-and-off talks for weeks about controlling traffic through the waterway, which handled one-fifth of global oil and liquefied natural gas shipments before the war began in February.

In an effort to hobble Iran’s economy, the U.S. on Monday unveiled an expansion of sanctions to cut off Iran’s economic lifeline, threatening to punish countries that continue to do business with Iran, but said it would not impose penalties immediately.

(Reporting by Yuka Obayashi; Editing by Chris Reese)