Brent Price Plunges as Hormuz Fears Ease

Brent oil prices retreated to the mid-$80s on Thursday as traders anticipated progress towards reopening the Strait of Hormuz.

The potential for improved diplomatic efforts between Qatar and Iran, along with ongoing talks between Tehran and Oman over control of the waterway, weighed on Brent futures, which were down 0.5% at $87.43 a barrel.

According to FXEmpire senior analyst Muhammad Umair, $86 is a key downside level for Brent, as a break below it could push prices toward $76.

Hormuz handled oil and gas shipments equal to about one-fifth of global consumption before the war, but now flows are still only around a quarter of pre-war levels.