Omani oil prices fell on Wednesday, 27 May, as markets bet on possible progress between Washington and Tehran to reopen the Strait of Hormuz, despite military tensions and Donald Trump’s threats against Oman, Oman Daily reported.

Omani crude for July delivery settled at $92.39 a barrel, down $3.18 from Tuesday. The two global benchmarks, Brent and US WTI, also fell by more than 3%, after surging the previous day on tensions around Hormuz.

Trump rejected the idea of Iran and Oman jointly managing Hormuz, saying the strait must remain open and should not be controlled by a single country.

He threatened Oman with military retaliation if the sultanate did not “behave”, as a draft agreement reported by Iranian television envisages a gradual resumption of commercial traffic through the strait.

Trump’s threats came as a surprise, given Oman’s status as a long-standing US ally and a regular mediator between Washington and Tehran.

Source: Oman Daily