Oil held losses as Iran said it reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising the prospect of more energy flows resuming through the critical waterway.Brent traded near $79 a barrel, after rising more than 1 per cent earlier in the session, while West Texas Intermediate was around $75 after losing 11 per cent in the week’s first three sessions. A joint statement from the two countries is under review and the route would remain active for two to four months, although the agreement does not mean a full reopening, according to Iranian officials.US president Donald Trump said at a rally in Las Vegas on Wednesday evening that the US is talking to Tehran, and he will “see what happens” in ongoing negotiations.Crude prices have declined on optimism that some form of accord to restore traffic through the waterway is near, with Trump again touting that a deal was close. Still, uncertainties remain and traders have been reluctant to fully unwind long positions, wary of being wrong-footed by a sudden escalation.“US oil prices have already fallen below $80 per barrel as the global oil market evaluates the potential of a deal with Iran,” said Rob Thummel, senior portfolio manager at Tortoise Capital. “If a deal is reached, then it is possible for oil to head toward $70 per barrel.”In a sign of persistent risks to shipping in the Middle East, the UK Navy reported a tanker hearing two explosions while transiting the strait near Kumzar, Oman. Earlier, Iran-backed Houthi militants in Yemen said they targeted a Saudi oil tanker in the Gulf of Aden. The group also threatened others in the Red Sea.Meanwhile, US crude stockpiles rebounded from their lowest since 2018, while inventories at Cushing, Oklahoma, climbed back above the 20 million barrels widely considered to be the operational minimum, government data released Wednesday showed. Distillate exports — a category that predominantly covers diesel — rose to a new record.Elsewhere, oil loadings at the key Caspian Pipeline Consortium terminal on the Black Sea were disrupted again after drone alerts were issued nearby. The terminal handles most of Kazakhstan’s crude exports. - Bloomberg