SINGAPORE, 27 August, 2026 (Ghufran): Oil prices fell for a fourth consecutive day on Thursday amid growing expectations that diplomatic talks involving Iran and Qatar could lead to the reopening of the strategic Strait of Hormuz and ease supply disruptions caused by the Middle East conflict. Brent crude futures declined 60 cents, or 0.7%, to $87.24 a barrel by 0004 GMT, extending losses for a fourth day. West Texas Intermediate crude futures also fell 56 cents, or 0.7%, to $81.67 a barrel, marking its fifth consecutive day of declines. Iran and Oman are reportedly working to finalise details of an agreement concerning control of the Strait of Hormuz, according to a senior Iranian source. Earlier, Iran’s Revolutionary Guards said the two countries had reached an understanding on how to share the vital waterway and its revenues. Before the US-Israeli war with Iran began on February 28, the Strait of Hormuz carried oil and natural gas shipments equivalent to around one-fifth of global fuel consumption. Since Iran moved to restrict access to the waterway, oil flows have fallen to around one-quarter of their pre-war levels, according to ship-tracking data. ANZ senior commodity strategist Daniel Hynes said crude oil prices had edged lower as prospects for reopening the Strait of Hormuz improved amid ongoing negotiations. However, he cautioned that concerns over shortages in the oil market remained.

Qatar’s prime minister is due to travel to Iran on Thursday in an effort to revive diplomatic talks aimed at ending the conflict, which has continued for nearly six months. The United States has halted attacks on Iran for about a month and is seeking to increase economic pressure on Tehran, raising investor expectations that disruptions to Gulf energy supplies could ease. Despite the diplomatic efforts, major differences remain between the countries over the conditions for ending the conflict. Iran has also targeted shipping in the Gulf and the Strait of Hormuz as part of efforts to maintain control over the waterway. Iranian officials have said the strait would not reopen unless the United States agrees to conditions under an interim ceasefire arrangement reached in June but later collapsed. Meanwhile, the Middle East and Russia-Ukraine conflicts are also affecting the global diesel market. Several Middle Eastern refineries have been damaged, while Ukrainian strikes on Russian refineries have reduced exports from a major global diesel supplier.The impact is increasingly visible in inventory data. The US Energy Information Administration reported that US distillate stockpiles, including diesel and heating oil, fell by 2.2 million barrels in the week ending August 21 to 103.4 million barrels. Hynes said the figure represented the lowest distillate stockpile level ever recorded for this time of year.