Oil Prices Sink as Strait of Hormuz Reopening Hopes Rise

Oil prices continued to slide as talks between Iran and Qatar aimed to ease Middle East supply disruptions. The Strait of Hormuz, a critical waterway for oil shipments, is expected to reopen following ongoing negotiations.

Brent crude futures fell by 60 cents or 0.7% to $87.24 per barrel, while West Texas Intermediate (WTI) dropped 56 cents or 0.7% to $81.67 per barrel, extending a streak of multiple days of losses.

A senior Iranian source stated that Iran and Oman are working on finalizing details of an agreement to control the Strait of Hormuz, which connects major Gulf oil producers to markets and their revenues.

According to ship-tracking data, oil flows through the strait have dropped to about one-quarter of their pre-war levels. The U.S. has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Iran.