Oil prices fall as Iran-Qatar talks raise hopes for Strait of Hormuz reopening

Oil prices fell for a fourth consecutive day on Thursday, with Brent crude dropping 0.7% to $87.24 a barrel, as talks between Iran and Qatar raised expectations the Strait of Hormuz may reopen and ease supply disruptions from the Middle East war. Iran and Oman are finalizing an agreement to control the strait, which carried about one-fifth of global oil and gas consumption before the conflict began on February 28. Oil flows have since dropped to roughly one-quarter of pre-war levels, though the US has halted attacks on Iran for about a month. Iran has said the strait will not open unless the US meets its conditions, and shipping strikes continue. Meanwhile, global diesel stocks hit record lows for this time of year, with Middle East and Russian refinery damage cutting output.