Doha: Oil prices dropped about 2% on Wednesday, extending losses from the previous session, as renewed hopes that the Strait of Hormuz could reopen emerged after Iran said it had resumed talks with Oman on managing the strategic waterway. Brent crude futures fell $1.78, or 2.0%, to $86.80 a barrel, while US West Texas Intermediate crude futures were down $1.49, or 1.8%, at $80.87.

According to Qatar News Agency, both benchmarks experienced a significant decline, losing more than 3% on Tuesday. The discussions between Iran and Oman have sparked optimism about the potential easing of tensions in the critical maritime corridor, which is a vital route for global oil shipments. The reopening of the Strait of Hormuz is seen as crucial for stabilizing oil supplies and prices in the international market.

The renewed dialogue between the two countries comes at a time when global markets are closely monitoring developments in the region. The potential reopening of the Strait of Hormuz could have widespread implications for the energy sector, impacting oil production and distribution channels worldwide.