Oil prices have fallen for a third consecutive session, driven by signs that the US and Iran are nearing an agreement to reopen the Strait of Hormuz, a move that could restore millions of barrels of daily crude supply disrupted by months of conflict. West Texas Intermediate (WTI) crude dropped 0.7% to settle near $75 per barrel, marking its lowest level in nearly a month.

Iran announced it has reached an understanding with Oman regarding proposed navigation routes through the Strait of Hormuz, though it has not yet decided whether to proceed with a second round of negotiations with the United States. Late Tuesday, US President Donald Trump stated that a deal on the Strait of Hormuz is imminent. Despite this progress, uncertainty lingers in the market. Traders are hesitant to fully unwind their long positions, wary of being caught off guard by a sudden escalation in tensions.

Iran's state television later downplayed the significance of talks with Oman, suggesting that a potential agreement on the Strait of Hormuz does not necessarily imply an immediate reopening. Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, commented: "Traders are trying to read the tea leaves from various signals. As prices increasingly reflect expectations of a deal, I anticipate the crude market will remain highly sensitive to every headline until the situation becomes clearer in the coming days."

This week's sustained decline in oil prices stems from market expectations that the US and Iran may reach a compromise to restore crude shipments through the Persian Gulf. The September WTI contract settled at $75.22 per barrel, while the October Brent contract closed at $79.45 per barrel.