Brent crude futures fell 92 cents, or 1.2%, to $78.44 a barrel in early Wednesday trade, extending a three-day decline that has wiped out more than 12% of its value.
According to trading data from global energy exchanges, the sell-off deepened after U.S., Qatari, and Omani officials indicated talks with Tehran to reopen the blockaded Strait of Hormuz were advancing.
The global benchmark touched its lowest level since mid-July, dropping after U.S. Treasury Secretary Scott Bessent stated a deal restoring commercial vessel traffic through the waterway could be reached imminently.
The strategic chokepoint previously carried nearly one-fifth of global oil consumption before military conflict shut down regular shipping routes in February, driving retail fuel prices higher worldwide over recent months.
U.S. West Texas Intermediate futures also declined to $74.70 a barrel. Market analysts noted that while risk premiums are unwinding fast, physical crude supplies will remain tight until shipping fully resumes.
