By: Economy Middle East

Oil prices extended their losses on Wednesday after recording sharp declines over the previous two sessions, as investors monitored developments in efforts to end the Iran conflict and reopen shipping through the Strait of Hormuz.

Brent crude futures fell 51 cents, or 0.64 percent, to $78.85 a barrel by 5:03 GMT, bringing their weekly decline to more than 12 percent. Meanwhile, U.S. West Texas Intermediate (WTI) crude slipped 61 cents, or 0.81 percent, to $75.16 a barrel, leaving it down more than 11 percent for the week.

Brent falls below $80 for first time since July 13

Oil prices came under further pressure after Qatar said on Tuesday that mediators were making progress toward ending the conflict, raising hopes for the restoration of shipping through the Strait of Hormuz. However, Tehran rejected U.S. President Donald Trump’s claim that negotiations were underway.

Brent crude settled more than 5 percent lower on Tuesday, closing below $80 a barrel for the first time since July 13.

Before the conflict began, around 20 percent of the world’s oil and liquefied natural gas (LNG) supplies passed through the Strait of Hormuz. In March alone, oil prices had surged by about 50 percent, underscoring the market’s sensitivity to disruptions along the key shipping route.

U.S. crude and gasoline inventories rise

Oil markets also remained focused on diplomatic developments after Qatar’s Emir Sheikh Tamim bin Hamad Al Thani and U.S. President Donald Trump discussed efforts to bridge differences between Washington and Tehran and improve the prospects for a lasting settlement during a phone call on Tuesday, according to Qatar’s Emiri Office.

Meanwhile, supply data added to market sentiment. Industry figures from the American Petroleum Institute showed that U.S. crude and gasoline inventories increased last week, while distillate stockpiles declined.

Investors are now awaiting official inventory data from the U.S. Energy Information Administration, due later on Wednesday.