Oil Prices Slip Below $90 as Iran-US Diplomacy Gains Momentum

Global oil prices have dropped below $90 a barrel as diplomatic efforts between Iran and the US continue to intensify. Qatar's prime minister is set to visit Tehran on Thursday, following Pakistan's army chief who traveled there three days earlier. Both countries have played a key role in informal contacts between Iran and the US throughout the conflict.

The Strait of Hormuz remains at the center of energy tensions, with oil flows through the strait having fallen to their lowest level in three months. Around 5 million barrels per day were transported along this route on Monday, despite US statements last week that volumes had recovered significantly. Before the war began, approximately 20 million barrels of oil passed through the strait each day.

Conflicting signals in the oil market echo earlier stages of the crisis, with Washington and Tehran making no progress toward resolving their key differences. The conflict is becoming protracted, with energy markets remaining dependent on developments and inflation elevated.