Oil Prices Slide as Hormuz Hopes Boost Diplomacy

Oil prices continued their downward trend on Thursday as hopes of renewed Middle East diplomacy raised expectations that the Strait of Hormuz could reopen, easing concerns over prolonged supply disruptions.

Brent crude fell 0.5% to $87.43 a barrel, while US West Texas Intermediate crude dropped 0.5% to $81.86, on track for a fifth day of declines.

The selling followed reports that Iran and Oman were working to finalise an agreement concerning the Strait of Hormuz, which handles oil and gas shipments equivalent to about one-fifth of global fuel consumption.

Qatar's prime minister is due to travel to Iran on Thursday to revive diplomatic talks aimed at ending the nearly six-month-old conflict. The US has halted attacks on Iran for about a month, while seeking greater economic pressure on Tehran.