Oil prices have fallen as the Strait of Hormuz is expected to reopen.

In early Asian trading, oil prices fell as the Strait of Hormuz is expected to reopen, a key waterway through which one-fifth of the world's oil is transported. Joseph Dahrieh from Tickmill stated in an email that Iran seems to be "close to reaching an understanding with Oman on the issue of the Strait of Hormuz." The managing director noted that, in addition, "President Trump has not ordered a new wave of military action in the Middle East, which has increased hopes for a diplomatic resolution." Dahrieh added, however, that "Iran denies any negotiations with the United States, which may still limit the extent of price corrections." West Texas Intermediate crude futures for the nearest month fell 0.6% to $79.88 per barrel.