Oil prices retreated in early European trading, with Brent crude for October delivery down 1.4% to $86.66 a barrel and WTI down 1.6% to $80.94, levels broadly in line with Wednesday morning, as markets stayed cautiously positive that Iran-Oman talks could eventually ease Strait of Hormuz constraints. Iranian state media said Iran’s military reached a revenue-sharing agreement with Oman, but officials stressed the deal would not reopen the strait and ANZ analysts said any reopening would require U.S. involvement. Saudi Arabia is showing signs of greater oil loadings in the Persian Gulf even as shortage concerns persist, while the broader backdrop still includes Russian export risks from Ukrainian strikes and alternative routing away from Red Sea threats.