Bessent's Comments Spark Sharp Decline in Oil Prices

U.S. Treasury Secretary Scott Bessent's comments on August 4 sparked a sharp decline in oil prices, as traders reassessed the risk of prolonged supply disruption.

Brent crude fell by 5.3% to $79.36, while West Texas Intermediate dropped by 5.7% to $75.77.

The comments came during Bessent's appearance on CNBC's Squawk Box, where he stated that the U.S. was in talks with Iran and that there was a possibility of a deal being reached within a day or two to open the Strait of Hormuz and normalize the conflict.

Bessent also made it clear that Iran would not be allowed to charge ships a toll to pass through the waterway, effectively ruling out one of Tehran's key demands in negotiations.