FX.co ★ Oil Edges Lower on Diplomatic Hopes

Crude oil fell below $82 per barrel on Thursday, marking a fourth consecutive session of declines amid signs of diplomatic progress in the Middle East. Iran and Oman reached an agreement on each country’s share of the Strait of Hormuz’s waters and associated revenues, though Tehran cautioned that reopening the vital shipping lane would require more than a bilateral deal with Oman. At the same time, President Donald Trump said 10 million barrels of oil had passed through the strait on Tuesday and reiterated claims that mines in the waterway had been cleared. Prices have also come under pressure this week after new US economic sanctions on Iran proved less severe than markets had expected, with the White House so far refraining from imposing tougher measures on Iran’s trading partners. Separately, reports that Russian President Vladimir Putin was planning an escalation in Ukraine kept risks to global energy supplies in focus.