Oil Prices Drop as Strait of Hormuz Talks Raise Hopes for Eased Middle East Supply Disruptions
Oil prices declined for a fourth day on Thursday as talks between Iran and Qatar raised hopes that the Strait of Hormuz would reopen, easing supply disruptions from the Middle East conflict.
The Brent crude futures price fell by 60 cents, or 0.7%, to $87.24 a barrel, while West Texas Intermediate crude futures dropped 56 cents, or 0.7%, at $81.67.
A senior Iranian source stated that Iran and Oman were working on finalizing an agreement to control the Strait of Hormuz, which connects major Gulf oil producers to markets and is responsible for carrying one-fifth of global consumption of fuels.
According to ship-tracking data, oil flows have dropped to about one-quarter of their pre-war level since Iran shut down the waterway in response to the conflict with the US and Israel, which began on February 28.