Crude oil prices extended their decline for the fourth day today on news that Qatar’s Prime Minister will visit Tehran today to discuss the possibility of reopening the Strait of Hormuz.
At the time of writing, Brent crude was trading at $87.46 per barrel, with West Texas Intermediate at $81.83 per barrel.
A statement from Qatar’s Foreign Ministry spokesperson indicated that the discussions would focus on freedom of navigation in the chokepoint and the possibility of its reopening, as well as ways to “de-escalate tensions and create the conditions conducive to dialogue.”
For now, open hostilities are on pause as the United States decided to try economic pressure by means of new sanctions targeting Iran’s oil industry as well as other vital sectors of its economy.
Iran, for its part, responded with a blacklist of 45 tankers it said would be fair targets in the waterway if they violate the rules Iran set earlier this year for navigation of Hormuz.
Peace appears to be no closer than it was a month ago, but oil traders are optimistic despite the Iranian tanker blacklist and reports about tankers getting hit by projectiles in the waterway.
