Why have oil prices fallen?

Prices fell due to progress in negotiations between Iran and Oman on a new maritime route, as well as hopes for a peace agreement between the US and Iran.

What are the current prices of Brent and WTI crude?

Brent crude futures fell to $79.12 per barrel, while US WTI crude fell to $74.80 per barrel.

What did the National Australia Bank analyst say?

Ray Attrill stated that the market is in a wait-and-see phase and that there is currently no strong volatility that characterized previous days and weeks.

How does the reopening of the Strait of Hormuz affect Croatia?

The stabilization of the global energy market and falling oil prices directly affect European energy security, which consequently impacts energy prices for Croatian consumers.

Economy

Hope for US-Iran Deal Keeps Oil Prices Below $80

E.K. · Prije 2h | 2 min

Brent and WTI futures decline as investors cautiously monitor progress in talks on reopening the Strait of Hormuz.

Summary

Brent crude fell to $79.12, and WTI to $74.80 per barrel, due to hopes for a peace deal.
Analyst Ray Attrill notes that the market is in a wait-and-see phase without significant volatility.
Iran announced that negotiations with Oman on a new route through the Strait of Hormuz are in the final stages of alignment.

Oil prices on global markets continued their downward trend on Thursday, driven by progress in negotiations between Iran and Oman. Investors are simultaneously cautiously awaiting signs of a potential peace agreement between the United States and Iran, as well as concrete progress in reopening the strategically important Strait of Hormuz.

Brent crude futures, the global benchmark, fell by 33 cents, or 0.42 percent, to $79.12 per barrel. US West Texas Intermediate (WTI) crude saw a slightly more pronounced decline of 42 cents, representing a 0.56 percent decrease, to $74.80 per barrel. The previous day, on Wednesday, Brent closed trading with a slight gain, while WTI recorded only a marginal decline.

Market in Wait-and-See Mode

Hope for the success of peace negotiations between the US and Iran is keeping oil prices below the psychological threshold of $80 per barrel. Recall that after former US President Donald Trump announced talks with Iran, oil prices fell by more than five percent, marking one of the more significant daily drops in recent times.

Ray Attrill, an analyst at National Australia Bank, explained the current market sentiment to Financije.hr: "The market is largely in a wait-and-see phase. We don't currently have that volatility in the oil market that has been a major driver in recent days and weeks." Attrill added that markets are now waiting to see whether a deal will be reached at all.

Negotiations on New Route in Final Stages

A key factor influencing the calming of prices is also progress in bilateral talks on maritime routes. Iran's Foreign Ministry stated on Thursday that negotiations with Oman on establishing a new route for ships are in the "final stages of alignment." According to reports from US media, the new arrangement would involve ships entering the Persian Gulf taking a route through Iranian territorial waters.

These negotiations are considered a crucial step towards de-escalating tensions and potentially fully reopening the Strait of Hormuz, one of the world's most vital arteries for oil transport. Although the situation does not have a direct impact solely on Croatia, the stabilization of the global energy market and the potential decline in energy prices directly affect European, and thus Croatian, energy security and prices for end consumers.