US stocks hit record high as oil prices dip on Strait of Hormuz talks

Oil prices slipped on Tuesday after U.S. officials said that diplomatic talks aimed at restoring commercial traffic through the Red Sea’s Bab al‑Mandab strait were making headway. By mid‑day, Brent crude futures were down about 45 cents per barrel at $84.30, while U.S. West Texas Intermediate fell roughly 55 cents to $80.10, marking the first decline in the market since the waterway’s closure earlier this month.

The easing of supply concerns follows a series of high‑level meetings between representatives of the United Nations, Saudi Arabia and Yemen’s Houthi movement, which have been blamed for recent attacks on merchant vessels. U.S. State Department spokesperson Matthew Miller noted that “constructive dialogue is progressing,” and that a reopening could occur within weeks, reducing the risk premium that had pushed oil higher. Analysts said the price drop reflects market optimism that the shipping route, which handles a significant share of global oil shipments, will soon resume normal operations, though they cautioned that any setback in negotiations could quickly reverse the trend.