Oil prices fall on Middle East diplomatic hopes

Oil prices fell in early trading Thursday, extending losses for a fourth consecutive session on hopes of improved Middle East supply. West Texas Intermediate crude dropped 0.5% to $81.83 per barrel, after erasing about 6% over the previous three sessions. Reports indicated Iran and Oman reached an agreement on commercial shipping routes through the Strait of Hormuz, though Tehran warned this does not guarantee immediate reopening. Russian state media also reported a new US-Iran ceasefire deal could be announced soon, while Pakistan signaled progress in peace negotiations. Despite strengthened US sanctions against Iran and Tehran's threats of retaliation, navigation data shows Strait of Hormuz flows remain a fraction of pre-war levels. The passage previously supplied about 20% of global crude before becoming a major tension point in the conflict.