Oil Prices Slide Amid Hopes for Middle East Talks

Oil prices continued to decline on Thursday, extending a streak of losses, as hopes for Middle East talks to ease supply concerns grew. 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 in oil prices is attributed to the prospect of the Strait of Hormuz reopening amid ongoing talks between Iran and Qatar. The strait carried about one-fifth of global consumption of oil and LNG shipments before the US-Israeli war on Iran started on February 28. Since then, oil flows have dropped to a quarter of their pre-war level.

Qatar's prime minister will head to Iran today to relaunch diplomatic talks to end the conflict, which is nearly six months old. The US has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Iran.