Oil prices dropped on Thursday, continuing a multi-day slide as speculative markets reacted to diplomatic talks between Iran and Qatar aimed at easing Persian Gulf shipping tensions and reopening the crucial Strait of Hormuz.
Brent crude futures fell 41 cents, or 0.5%, to $87.43 a barrel, marking a fourth straight decline, while West Texas Intermediate slipped 37 cents to $81.86.
The price erosion underscores growing trader confidence that regional mediation will mitigate severe supply shocks caused by Middle East hostilities, easing the war premium embedded in global benchmark contracts.
Diplomatic efforts follow months of extreme volatility, during which Brent surged near $100 per barrel after military escalation disrupted tanker traffic through the narrow waterway, which carries 20% of global crude.
Subsequent high-level negotiations in Doha—paired with parallel Oman-brokered maritime talks—have gradually restored partial tanker movement, prompting energy analysts and investment banks to trim their near-term price forecasts.
Despite the recent downward momentum, crude benchmarks remain elevated compared to historical averages, supported by lingering geopolitical risks and constrained baseline output across major Middle Eastern producers.
