Global fuel oil prices continued to decline on Wednesday morning in international markets. Benchmark Brent crude fell by $1.78, or 2.0%, to $86.80 per barrel, while US West Texas Intermediate crude dropped by $1.49, or 1.8%, to $80.87 per barrel.

The decline followed reports that Iran said it would restart discussions with neighbouring Oman on opening the Strait of Hormuz. The prospect of the waterway being reopened created renewed expectations in the market and was cited as the factor behind the latest fall in oil prices.

Both major crude benchmarks had already declined by more than 3% on Tuesday. The report did not provide further details about the planned discussions, a timetable for the Strait of Hormuz, or additional market developments.