Oil prices dip as US‑Iran talks ease Hormuz transit risks

International oil benchmarks fell on Thursday after diplomatic signals suggested progress in indirect talks between the United States and Iran. Brent crude slipped to around $70.8 per barrel, its lowest level since February 2026, while U.S. WTI fell to about $67.7. The price drop coincided with reports that Saudi Aramco resumed loading at the Ras Tanura terminal and that tanker traffic through the Strait of Hormuz increased, indicating a gradual normalization of shipments.

Analysts said the market is shedding the geopolitical risk premium that had pushed prices higher in recent weeks. ING highlighted the rise in vessel movements—about 11 tankers passed the strait on the latest day, up from a peak of 24 the previous week—and noted that competition among Persian‑Gulf producers is intensifying, with Saudi sellers signalling price flexibility. The combination of reduced supply‑risk concerns and heightened competition helped push Brent down by roughly $1‑$2 per barrel.

The price move reflects broader optimism that indirect negotiations in Doha, mediated by Qatar, are moving toward a framework that could curtail the conflict in the region and keep the vital oil route open.