Oil steadied on Wednesday following two days of severe declines as investors waited for signs of progress in talks to end the U.S.-Iran dispute and reopen commerce through the blockaded Strait of Hormuz.

Brent crude futures were up 26 cents, or around 0.33%, at $79.62 a barrel by 0110 GMT. U.S. West Texas Intermediate crude was up 0.16%, or 12 cents, to $75.90 a barrel.

Qatar claimed on Tuesday mediators are making headway in efforts to end the war, bringing oil prices lower, though Tehran has dismissed U.S. President Donald Trump’s assertion that discussions are already under way. Brent fell below $80 a barrel for the first time since July 13 on Tuesday.

“The main sticking point appears to be whether Iran will stick to its guns and demand a level of control over the waterway, and whether the US will stand its ground and reject that outcome,” IG analysts wrote in a note.

Brent fell more than 5% on Tuesday, adding to sharp losses after comments from Qatar on Monday raised expectations that an agreement may be struck shortly. Some 20% ‌of ⁠the world’s oil and liquefied natural gas passed through the strait before the war, and prices soared 50% in March alone.

Qatar’s Emir Sheikh Tamim bin Hamad Al Thani and Trump spoke on Tuesday about attempts to reduce divisions between Washington and Tehran and boost the prospects for a durable settlement, the Emiri administration said.

Trump claimed on Monday discussions with Tehran had begun and Iran had a “last chance” to strike a deal. Iranian officials deny that any talks are taking place with the U.S.

U.S. oil and gasoline stockpiles rose and distillate stocks declined last week, market sources reported on Tuesday citing data from the American Petroleum Institute.
Crude inventories rose by roughly 2.7 million barrels in the week ended July 31, sources said on condition of anonymity.

Official figures from the EIA, the statistical arm of the U.S. Department of Energy, are due at 10:30 a.m. ET (1430 GMT) on Wednesday.

 Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Wednesday held a meeting with United States Trade Representative (USTR) Ambassador Jamieson Greer to review progress on the ongoing negotiations aimed at strengthening bilateral trade and economic cooperation between the two countries.

Recalling the recent discussions in Washington, DC, the finance minister welcomed the steady progress made by the respective negotiating teams and appreciated the constructive engagement that has characterized the dialogue over the time.

Both sides noted that negotiations on the proposed reciprocal trade framework have advanced significantly and reaffirmed their shared commitment to concluding the agreement at the earliest.

During the meeting, the finance minister highlighted the importance of maintaining the momentum of negotiations in view of Pakistan’s economic priorities. He emphasized that a strengthened trade and investment partnership with the United States would contribute to Pakistan’s export-led growth strategy, support economic resilience, and create greater commercial opportunities for businesses in both countries. He also underscored the importance of continued collaboration with the U.S. Export-Import Bank (EXIM) to facilitate bilateral trade and investment.

Ambassador Greer acknowledged Pakistan’s continued engagement throughout the negotiations and appreciated the progress made on labour and regulatory reforms, including measures relating to forced labour compliance. He reaffirmed the United States’ commitment to sustaining the positive trajectory of bilateral trade discussions and expressed confidence that the remaining issues could be resolved through continued technical engagement.

FinMin Aurangzeb emphasized the importance of maintaining close coordination and accelerating technical-level discussions to build on the progress already achieved. Both sides expressed satisfaction with the progress achieved and agreed to continue working closely to finalize the remaining elements of the framework and agreed to continue regular engagement with a view to concluding the reciprocal trade framework soon, further strengthening the longstanding economic partnership between Pakistan and the United States.

The meeting was also attended by Federal Secretary for Commerce, Jawad Paul, and senior team members of the Office of the United States Trade Representative (USTR).

KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday witnessed a robust comeback as the benchmark index gained more than 1,500 points amid investors tracking regional developments and increasing market mood.

The benchmark index KSE-100 added 1,525.87 points to settle at 178,609.09 points against previous closing of 177,083.22 points.

The index scaled an intra-day high of 179,463.43 points and touched a low of 178,512.09 points in the session. Trading volume was 91.11 million shares.

The good impetus came as news surfaced that the United States, Iran and Oman are edging towards an interim agreement to reopen the Strait of Hormuz. Washington is trying to announce the accord on Wednesday, reports said.

The proposed pact also includes a 60-day temporary arrangement between Oman and Iran on activities in the Strait of Hormuz that may be extended.

Market traders remained tuned on the diplomatic developments, hoping that a breakthrough on the issue could allay fears over uncertainty in the region and buoy wider economic optimism.