Oil Tumbles 5.9% to 3-Week Lows as U.S.-Iran Deal Hopes Reopen Hormuz Bets
Updated
Updated · OilPrice.com · Aug 4
Oil Tumbles 5.9% to 3-Week Lows as U.S.-Iran Deal Hopes Reopen Hormuz Bets
3 articles · Updated · OilPrice.com · Aug 4
Summary
WTI fell $4.70 to $75.64 a barrel and Brent dropped $4.61 to $79.16 on Tuesday, with both benchmarks hitting three-week lows as traders priced in a possible U.S.-Iran agreement.
Scott Bessent said a deal could come Tuesday or Wednesday, Marco Rubio cited progress in Oman-linked talks, and Donald Trump called an agreement to reopen the Strait of Hormuz and denuclearize Iran “imminent.”
Iran pushed back on that optimism, denying direct talks with Washington and saying negotiations are running through Omani mediators while seeking authority over inbound shipping and visibility over outbound traffic.
Shipping data did not confirm a real reopening: only six vessels were tracked through Hormuz on Monday versus seven a day earlier, Bab el-Mandeb traffic was little changed, and a cargo ship was struck near Oman.
About one-fifth of global oil and gas normally moves through Hormuz; Saudi Aramco says the war has already cut more than 2.6 billion barrels from supply since February.
If Iran gains control and demands transit fees, will the reopening of the Strait of Hormuz actually keep global oil prices permanently high?
Can Oman's delicate diplomacy truly secure international shipping, or are global energy markets walking into a carefully orchestrated trap by Tehran?
With hidden minefields and damaged infrastructure remaining, is the celebrated diplomatic breakthrough in the Strait of Hormuz just an illusion of safety?