Oil Prices Plummet on Hopes for Strait of Hormuz Reopening

Oil prices continued their downward trend on Thursday, extending losses for the fourth day in a row. Brent crude futures fell $1.07, or 1.2%, to $86.77 a barrel, while West Texas Intermediate crude futures dropped $1.13, or 1.4%, to $81.10.

The decline is attributed to expectations that talks between Iran and Qatar may lead to the reopening of the Strait of Hormuz, which has been disrupted by the war in the Middle East. The strait carried about one-fifth of global oil consumption before the US-Israeli war on Iran started on February 28, but oil flows have dropped to a quarter of their pre-war level.

Qatar's prime minister is set to visit Iran on Thursday to relaunch diplomatic talks aimed at ending the conflict, which has lasted nearly six months. The US has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on the country.