Oil prices slipped in early Asian trading as optimism grew over the potential reopening of the Strait of Hormuz, a vital maritime route carrying about one-fifth of the world's oil supply.

ANZ Research analysts noted that Iran reportedly reached an agreement with Oman on a proposed shipping route through the waterway, though details remain to be finalized. The analysts indicated that both inbound and outbound routes are planned for the northern part of the Strait within Iranian territorial waters.

Despite the cautious optimism, front-month WTI crude oil futures dipped 0.3% to $74.98 per barrel in early Asian trade.

The Strait of Hormuz has been a focal point of global energy security concerns, with previous disruptions causing significant volatility in oil markets. While the reported agreement suggests potential relief, market participants are awaiting further confirmation and clarity on implementation.

Analysts caution that until concrete steps are taken to restore safe passage, oil markets may continue to experience fluctuations based on geopolitical developments in the region.