Oil Prices Plummet on Diplomatic Hopes in Middle East
Oil prices fell sharply on Thursday as hopes for diplomatic talks between Iran and Qatar sparked expectations of eased supply disruptions in the Middle East. Brent crude futures dropped $1.36, or 1.55%, to $86.48 a barrel, marking a fourth consecutive day of declines.
The decline is largely attributed to rising expectations that a deal could materialize to open the Strait of Hormuz and increase shipping numbers through the waterway, according to KCM chief market analyst Tim Waterer.
Qatar's prime minister will visit Iran on Thursday to relaunch diplomatic talks, which have been ongoing for nearly six months. The conflict has centered around control of the Strait of Hormuz, a critical transit route for global oil supplies, with Tehran using it as leverage.