Crude oil closes lower, with a US official stating that Oman and Iran have made progress in talks over the Strait of Hormuz.

According to Bitget market data, both U.S. WTI and Brent crude oil closed lower this week: U.S. WTI crude fell 1.32% to $76.35, while Brent crude dropped 1.54% to $81.50. On the news front, U.S. officials said negotiations between Oman and Iran over the Strait of Hormuz have made progress, with an agreement expected soon. Once an accord is announced to restore unimpeded commercial shipping through the Strait of Hormuz, the U.S. will lift its blockade on Iranian ports. U.S. actions will remain contingent on implementation and tied to Iran’s fulfillment of its commitments. Meanwhile, Hassan Kashkavi, spokesperson for Iran’s Majlis National Security and Foreign Policy Commission, stated that Iran and Oman have finalized the overall framework of a memorandum of understanding (MOU) related to Strait of Hormuz shipping, with the final text and specific details to be released shortly. Earlier on August 6, Iran published details of the preliminary text of its proposed Strait of Hormuz strategic management plan, which includes provisions banning hostile parties from transiting the strait, with violators facing fines of up to 20% of the value of the goods involved.