India, Aug. 26 -- Oil prices fell sharply on Wednesday, with both major oil benchmarks dropping more than $2 a barrel as hopes grew that the Strait of Hormuz could partially reopen. Brent crude futures fell $2.73, or 3.08%, to $85.85 a barrel by 10:12 GMT on Wednesday. West Texas Intermediate (WTI) crude fell $2.21, or 2.68%, to $80.15 a barrel. Both Brent and WTI hit their lowest levels since August 10 earlier in the trading session.

The main reason behind the fall was fresh talks between Iran and Oman over the Strait of Hormuz, which have raised hopes that oil shipments through the important waterway could resume. "That sort of creates some optimism," Bjarne Schieldrop, chief analyst for commodities at SEB Research, said, according to ...