Oil Holds Three-Day Drop as Iran-Oman Hormuz Route Deal Nears

US President Donald Trump has repeatedly said a deal is close. Traders have been reluctant to fully unwind long positions. They remain wary of a sudden escalation. "US oil prices have already fallen below $80 per barrel as the global oil market evaluates the potential of a deal with Iran," said Rob Thummel, senior portfolio manager at Tortoise Capital. "If a deal is reached, then it is possible for oil to head toward $70 per barrel."

The drop pressures energy-sector earnings and threatens tanker owners who have been collecting premiums on detours around the Cape of Good Hope. Airlines and other fuel-intensive industries stand to benefit from cheaper input costs. The temporary nature of the route leaves uncertainty about how much traffic will actually shift.

Shipping risks in the Middle East remain elevated. Iran-backed Houthi militants in Yemen said they targeted a Saudi oil tanker in the Gulf of Aden. The group also threatened others in the Red Sea. The attacks show that a temporary Hormuz route does not eliminate broader security concerns across the region.