Iran-Qatar Talks Boost Hopes for Eased Middle East Oil Disruptions
Oil prices fell for a fourth and fifth consecutive day on Thursday due to expectations that talks between Iran and Qatar may ease supply disruptions from the Middle East war. Brent crude futures were down $0.60, or 0.7%, to $87.24 a barrel by 0004 GMT, while West Texas Intermediate crude futures fell $0.56, or 0.7%, at $81.67.
The Strait of Hormuz, which connects major Gulf oil producers to markets and carries oil and natural gas shipments equal to about one-fifth of global consumption, is expected to reopen as Iran and Oman work on finalizing details of an agreement to control the waterway.
Qatar's prime minister will head to Iran on Thursday to relaunch diplomatic talks to end the conflict, which is nearly six months old. The U.S. has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Iran, raising investors' expectations for an easing of the Gulf supply disruptions.
However, countries are far apart on their demands to end the fighting, with Iran requiring the U.S. to meet its conditions under an interim ceasefire agreement that was struck in June but later unraveled.