Oil extends losses on hopes Middle East talks could ease supply woes

Qatar's prime minister will head to Iran on Thursday to relaunch diplomatic talks to end the conflict, which is nearly six months old.

The visit comes as the war nears its sixth month with fighting largely paused but no diplomatic breakthrough in sight. Both sides are at odds over control of the Strait of Hormuz, a chokepoint for global oil supplies that Tehran has used as leverage.

The strait, which handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February, has been at the centre of concerns over global energy supplies because of its critical role as a transit route for exports from major Gulf producers.

Shipping traffic at the strait rose slightly on Wednesday despite the standoff, data showed.

A senior Iranian source on Wednesday said Iran and Oman were working on finalizing details of an agreement to control the Strait of Hormuz, after Iran's Revolutionary Guards said the two countries had agreed how to share the waterway.