Global oil prices continued to decline through Thursday morning as markets anticipated possible talks between Iran and Qatar that could reopen the Strait of Hormuz to normal shipping. Brent crude fell 60 cents, or 0.7 percent, to $87.24 a barrel, while US West Texas Intermediate crude dropped 56 cents, or 0.7 percent, to $81.67 a barrel.

The potential Iran-Qatar discussions are seen as the main reason for the price decline. Conflict in the Middle East had disrupted vessel movements through the strategically important waterway, raising concerns over oil supplies. A return to normal shipping through the strait could reduce disruptions caused by the conflict.

The prospect of improved supply conditions has eased market concerns about oil shortages, extending a multi-day decline in both Brent and WTI prices. Reuters reported that market participants are now watching closely for the outcome of the expected talks between Iran and Qatar.