Oil barrel price drops 7% with hopes of reopening the Strait of Hormuz

Oil prices have dropped by 7% due to hopes for peace negotiations that may reopen the Strait of Hormuz. Brent crude fell to $104.78 per barrel, while WTI decreased to $96.64. The decline is linked to ongoing talks between Iran and the U.S. in Qatar, which could lead to increased oil tanker traffic in the region, where 20% of global oil passes. However, the negotiations have been ongoing for months without concrete results, and geopolitical tensions remain high, particularly with the U.S. maintaining military options.