Hormuz Deal Hopes Fuel Oil Price Slide Amid Russia-Ukraine Tensions
Oil prices continued their decline on August 27 as investors weighed diplomatic progress in West Asia against escalating tensions between Russia and Ukraine. Brent crude traded around $87 per barrel, while WTI slipped 0.7% to $81.67 a barrel.
The retreat in prices hinted at growing optimism that a deal could be struck over navigation through the Strait of Hormuz. Iranian officials cautioned that any agreement would not immediately reopen the strait, but tankers appeared to be moving through the waterway once again, according to Bloomberg.
US President Donald Trump said 10 million barrels of oil had left Hormuz on Tuesday alone, fuelling hopes that flows through the vital shipping route were picking up. However, the Russia-Ukraine conflict threatened to disrupt global energy supplies further, with Ukraine targeting Russian refineries and ports.