Oil prices fall as Hormuz talks ease supply concerns
- Oil prices declined as investors reacted to expectations that Iran-Qatar talks could reduce Strait of Hormuz disruptions.
- Brent crude fell 1.55% to $86.48 a barrel, while WTI declined 1.7% to $80.83.
- Markets continued monitoring diplomatic efforts and risks around Middle East energy supply routes.
Brent crude futures fell $1.36, or 1.55%, to $86.48 a barrel, while West Texas Intermediate (WTI) crude futures declined $1.40, or 1.7%, to $80.83 as markets reacted to expectations of reduced supply disruptions.
The price declines extended recent losses, with Brent heading toward a fourth consecutive day of declines and WTI moving toward a fifth day of losses as investors monitored diplomatic developments in the Middle East.
“Oil has weakened again today as the market prices in rising expectations that a deal could materialise which would increase shipping numbers through the Strait of Hormuz,” said Tim Waterer, KCM chief market analyst.
The market reaction followed plans for Qatar’s prime minister to travel to Iran to restart diplomatic discussions, while investors continued assessing the potential impact of any changes to shipping activity through the Strait of Hormuz.
Following the announcement, Brent crude price was $86.48 per barrel and the WTI crude price was $80.83 per barrel.
The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began, making the waterway a key focus for energy markets.
Shipping traffic through the strait increased slightly on Wednesday, while analysts said uncertainty remained due to ongoing disputes involving Iran’s nuclear program and control of the strategic transit route.
