Oil Prices Slump as Talks to Ease Middle East Supply Woes Show Progress

Oil prices continued their downward trend on Thursday, extending losses for a fourth day in Brent crude futures and a fifth day in West Texas Intermediate (WTI) crude futures.

The drop came as Iran and Qatar worked to finalize details of an agreement to control the Strait of Hormuz, a key waterway that connects major Gulf oil producers to markets. The strait has been impacted by the ongoing Middle East war, with oil flows dropping to about one-quarter of their pre-war level.

Anz's senior commodity strategist Daniel Hynes noted that the prospect of the Strait of Hormuz reopening improved amid ongoing talks, but cautioned that concerns over shortages in the oil market persist.