Oil Prices Drop for Third Consecutive Day as US-Iran Talks Ease Supply Fears

Global oil prices fell for a third straight day on Thursday after talks between the United States and Iran in Doha reduced concerns about possible disruptions to oil supplies through the Strait of Hormuz.

Brent crude dropped 1.48% to $70.51 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.55% to $67.52 per barrel, marking their lowest levels since late February.

Qatar said the latest round of US-Iran discussions made positive progress on issues related to the June ceasefire agreement, although no lasting peace deal was reached. Another round of negotiations is expected after the funeral ceremonies for Iran's late Supreme Leader.

Analysts said the continued flow of oil through the Strait of Hormuz, releases from strategic oil reserves, and weaker-than-expected demand from China have all contributed to the decline in prices.

Despite the easing tensions, Iran warned that any US interference in the Strait of Hormuz would trigger a swift and decisive response.

Meanwhile, Nigeria officially joined the International Energy Agency (IEA) as an associate member, expanding the organisation's global energy network.

In a separate development, Ukraine said its military struck the Lukoil-Nizhegorodnefteorgsintez oil refinery in Russia's Nizhny Novgorod region as fighting between the two countries continues.

Several major banks also revised their oil price forecasts, with UBS lowering its Brent crude outlook, while HSBC expects prices to recover later this year as excess supply eases and strategic stock releases come to an end.

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