Muscat: Oil prices dropped about 2% today, 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 Oman News Agency, both benchmarks had lost more than 3% in the previous trading session. The discussions between Iran and Oman are aimed at ensuring safe passage through the Strait, a critical route for global oil shipments. The reopening of this waterway could significantly impact the global oil supply chain, alleviating concerns over potential disruptions in oil transport.

The Strait of Hormuz is a vital chokepoint for oil transit, with a significant percentage of the world's petroleum passing through this narrow stretch of water. The ongoing negotiations are seen as a positive development in regional diplomacy and could lead to stabilization in oil prices if successful.