Crude oil prices declined by more than 1% on Thursday. Brent crude fell to a four-month low of approximately $70.80 per barrel. West Texas Intermediate (WTI) also recorded losses during the session.
Indirect negotiations between the United States and Iran showed signs of progress in Doha. Qatar mediated the talks, which participants described as having positive momentum. The potential diplomatic breakthrough eased investor concerns regarding Middle East supply disruptions.
A lasting agreement could lead to the lifting of sanctions on Iranian crude exports. Increased oil flows through the Strait of Hormuz further pressured prices. These developments have contributed to market expectations of a global oversupply.