On the London market, a barrel of Brent crude traded at $96.95 in the afternoon, down $4.32, or 4.27 percent, from the close the day before. On the US market, a barrel of WTI crude fell $4.5, or 4.75 percent, to $90.56.
Benchmark oil prices on both markets ended trading on Wednesday with a drop of more than seven percent, dropping to the lowest levels in the last two weeks, thanks to optimism regarding a possible end to the conflict in the Middle East, Hrportfolio reports.
The price decline continued on Thursday as investors reacted to new media reports about progress toward a potential US-Iran deal that would end the war.
Analysts cited a report by Saudi news channel Al Arabiya, which said that agreements had been reached to ease the US blockade in exchange for the gradual reopening of the Strait of Hormuz. They also cited a report by Israel's Channel 12, which said that Iran had agreed to transfer its stockpile of 60 percent enriched uranium to a third country, without specifying which country.
Reuters was not immediately able to verify the content of any of the reports.
Iran said on Wednesday it was considering a US peace proposal, which sources said would formally end the war but leave key US demands unresolved, including suspending Iran's nuclear programme and reopening the Strait of Hormuz.
Separate calculations by the Organization of the Petroleum Exporting Countries (OPEC) show that a barrel of its members' basket of oil fell $6.07 on Wednesday from the previous day, to $112.26.
