Oil prices decline following Strait of Hormuz agreement

The agreement between Iran and Oman to activate a joint corridor in the Strait of Hormuz and the easing of supply risks in the market played a decisive role in the drop in oil prices.

Current Levels in Oil Prices

While Brent crude rose up to $91.29 yesterday, its barrel price closed the day at $87.27. As of 09:01, the November futures contract for Brent crude fell by 1.6 percent compared to the close, retreating to $85.86.

At the same minutes, the October futures contract for West Texas Intermediate crude was determined at $80.85, and a downward movement was observed in the market.

Agreement Made for the Strait of Hormuz

The reaching of an agreement between Iran and Oman to activate a joint corridor in the Strait of Hormuz was effective in the downward movement of oil prices.

Iranian Deputy Foreign Minister Kazem Gharibabadi announced that with the agreement, it was decided that the transport route in the strait would temporarily be 7 miles wide. It was also reported that Oman agreed to completely close the southern route.

Statements Made by the US and Qatar

US President Donald Trump announced that all mines in the Strait of Hormuz have been cleared by the US Navy and that they will show zero tolerance to Iran on this matter.

Meanwhile, Qatari Foreign Ministry Spokesperson Majed Al-Ansari stated that contacts are ongoing for the resumption of US-Iran negotiations, but no concrete progress has been achieved yet.

Supply Risks and Technical Levels in Markets

The possibility of commercial transits resuming through the Strait of Hormuz led investors to price out supply risks, while maritime transport activities in the region continue to hover below pre-war levels.

In light of these developments in the markets, technically $86.29 is being closely monitored as resistance and $85.21 as support for Brent crude.