Oil Prices Tumble on Hopes for Strait of Hormuz Reopening
Oil prices fell on Thursday as talks between Iran and Qatar raised hopes for the reopening of the Strait of Hormuz, which has been affected by supply disruptions from the Middle East war.
The Brent crude futures price dropped 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT, marking its fourth consecutive day of losses.
West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $81.86, in line for a fifth straight day of declines.
The Strait of Hormuz has been affected since the US-Israeli war on Iran started on February 28, with oil flows dropping to about one-quarter of their pre-war level, according to ship-tracking data.
Iranian officials have said the strait would not open unless the US met Tehran's conditions under an interim ceasefire agreement that was struck in June and later unraveled.
Priyanka Sachdeva, head of market insights at Phillip Nova, noted that 'at the heart of the dispute remains Iran's nuclear programme and that is unlikely to be resolved quickly...Iran also understands the importance of its geographical position and the leverage that the Strait of Hormuz provides, so the risk of prolonged uncertainty remains.'