Oil Prices Plummet as Hormuz Reopening Talks Gain Momentum

Oil prices dropped on Thursday due to hopes that talks between Iran and Qatar might open the Strait of Hormuz, reducing supply disruptions from the war in the Middle East.

Brent crude futures fell by $0.41 (0.5%) to $87.43 a barrel, while West Texas Intermediate crude futures declined by $0.37 (0.5%) to $81.86 per barrel.

The Strait of Hormuz carried about one-fifth of global oil consumption before the US-Israeli war on Iran started on February 28. Since then, oil flows have decreased to a quarter of their pre-war level due to Iran's efforts to shut the waterway.

Iran and Oman are finalizing details for an agreement to control the Strait of Hormuz after the two countries agreed on how to share its revenues and manage the waterway that connects major Gulf oil producers to markets.