Oil Prices Fall For Third Straight Day As Iran–U.S. Talks Ease Strait Of Hormuz Supply Fears

Oil Prices Fall for Third Straight Day as Iran–U.S. Talks Ease Strait of Hormuz Supply Fears Global oil prices declined further on Thursday, falling by about 1% and extending losses for a third consecutive session, after reports that indirect talks between Iran and the United States had made progress in discussions linked to the Strait of Hormuz, a critical global energy shipping route. The development, announced through mediators in Qatar, eased concerns about potential supply disruptions in the region and added downward pressure on crude benchmarks. Benchmark crude prices have now fallen for three straight days as traders reacted to signs of diplomatic movement between Washington and Tehran. Brent crude slipped below key levels during trading, while West Texas Intermediate also weakened, reflecting reduced fears of immediate disruption to oil flows through the Strait of Hormuz, which typically carries around one-fifth of global oil shipments. Market analysts said sentiment has shifted toward expectations of improved supply stability, following reports of “positive progress” in the indirect negotiations. According to reports from mediators, the latest round of discussions focused on stabilising maritime operations in the Strait of Hormuz, a strategically vital chokepoint for global energy trade. Qatar indicated that both Iran and the U.S. had made progress in indirect engagement, though there was no confirmation of a full breakthrough toward a lasting agreement. The talks are part of ongoing diplomatic efforts to de-escalate tensions that previously disrupted energy flows and triggered volatility in global markets. Oil prices have been highly sensitive to developments in the Middle East in recent months, particularly around the Strait of Hormuz, where earlier conflict had raised fears of major supply interruptions.

However, renewed dialogue and improved shipping conditions have reduced risk premiums, contributing to the recent slide in prices.

Analysts note that while tensions have eased, uncertainty remains over long-term political settlement and maritime security guarantees. In addition to geopolitical factors, expectations of increased output from OPEC+ producers have also contributed to bearish sentiment in the oil market. The combination of potentially higher supply and easing geopolitical risk has reinforced downward pressure on prices, even as global demand trends remain mixed. Despite the recent decline, market observers caution that oil prices could remain volatile depending on the direction of negotiations and developments in the Strait of Hormuz. Any setback in diplomatic talks or renewed tension in the region could quickly reverse recent losses and push prices higher again.