Oil Prices Slide as Hormuz Reopening Hopes Ease Supply Concerns

Brent crude slipped 0.5 % to $87.43 a barrel, marking a fourth consecutive day of declines, while U.S. West Texas Intermediate fell 0.5 % to $81.86, a fifth straight drop. The sell‑off follows reports that Iran and Oman are finalising an agreement on the Strait of Hormuz, the key energy corridor that once handled about 20 % of global oil and gas traffic before the recent conflict.

Qatar’s prime minister is slated to travel to Iran on Thursday to revive diplomatic talks aimed at ending the nearly six‑month‑old standoff. The United States has paused attacks on Iran for roughly a month, seeking to increase economic pressure while also looking for a broader ceasefire arrangement.

Analysts warn that the lingering risk to shipping could keep a war premium embedded in oil prices. The uncertainty also reverberates in diesel markets, where U.S. distillate inventories – covering diesel and heating oil – fell 2.2 million barrels in the week to August 21, reaching the lowest seasonal level on record, according to the U.S. Energy Information Administration.