Oil Barely Moves on Iran-Oman Strait of Hormuz Deal

Crude oil was little changed Wednesday after Iran's Revolutionary Guard said Tehran had reached an agreement with Oman over control of and revenue from the Strait of Hormuz.

Ships entering the Persian Gulf will pass through Iranian waters. Outbound vessels will use a corridor that includes both Iranian and Omani territorial waters, Iran's Deputy Foreign Minister Kazem Gharibabadi said, according to state news agency Tasnim.

The agreement gives Oman a defined role in the strait's administration and in the revenue it generates. The announcement did not include any commitment to keep the strait open during a conflict. Iran's authority over its own territorial waters is unchanged.

Oil prices were little changed.

The agreement covers transit rights and revenue sharing. It does not address the risk of a state-directed closure.

For the commodities complex, the Federal Reserve's Jackson Hole meeting is the next scheduled event. The personal consumption expenditures price index rose 0.2% month on month and 3.7% year on year in July, both 0.1 percentage point above the Dow Jones consensus. Core inflation came in at 3.3%, in line with expectations. Both readings remain well above the Fed's 2% target.

Fed officials meet in Jackson Hole, Wyoming, on Thursday. Chair Kevin Warsh is scheduled to deliver the keynote speech. Long-term borrowing costs hit a near-two-decade high last week, and the Treasury intervened in the bond market, CNBC reported.