Global crude oil prices continued their downward trend on Thursday, recording a third consecutive day of losses as optimism surrounding diplomatic talks between the United States and Iran eased concerns over potential disruptions to global oil supplies.

Brent crude futures slipped by around 1%, while U.S. West Texas Intermediate (WTI) crude also posted notable declines, extending a week-long selloff that has pushed both benchmarks to their lowest levels in months. The market reacted positively to reports that indirect negotiations between Washington and Tehran, hosted by Qatar, had made encouraging progress toward maintaining stability in the Strait of Hormuz.

The Strait of Hormuz remains one of the world’s most important oil transit routes, carrying a significant share of global crude exports. Any improvement in regional security typically reduces fears of supply shortages, placing downward pressure on oil prices.

Market analysts also pointed to weaker crude demand from China, increased availability of oil supplies, and improved shipping activity through the Gulf as additional factors contributing to the price decline. These developments have prompted some financial institutions to lower their short-term oil price forecasts.

Although oil prices have weakened over the past three trading sessions, traders remain cautious as negotiations between the U.S. and Iran are still ongoing. Any unexpected change in the geopolitical situation could quickly reverse the current market trend.

Investors are also monitoring global inventory levels, economic data, and future production decisions from major oil-producing nations, all of which could influence crude prices in the coming weeks.