Oil edges down in choppy trading amid Oman-Iran talks, US-Iran tensions
XLE•Strait of Hormuz remains a key focus
"The fact that Oman is in talks with Iran could suggest that progress is being made on re-opening the Strait of Hormuz," said Hamad Hussain, a climate and commodities economist at Capital Economics.
Iran-Oman talks on management of the strait continue, according to the Iranian Labour News Agency.
However, tensions continued to simmer after the U.S. military said it had hit dozens of Islamic Revolutionary Guard Corps targets in Iran in an operation launched after Tehran fired ballistic missiles at U.S. forces in the Middle East.
"Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere — hope for diplomacy is welcome, but the market is pricing in the reality of ongoing strikes," said Tim Waterer, chief market analyst at KCM Trade.
The Strait of Hormuz, which normally handles around a fifth of global oil and liquefied natural gas flows, has remained a focal point for oil markets since the Iran war began on February 28.
