Oil Prices Dip Amid Hopes of Short-Term Deal to End US-Iran Conflict
Oil prices continued their downward trend for the third consecutive session on August 5, amidst hopes of a short-term deal to end the US-Iran conflict and reopen the Strait of Hormuz to commercial shipping.
Brent crude futures fell by $1.1 or 1.34% to trade at $78.30 a barrel, while U.S. West Texas Intermediate crude declined by $1.43 or 2% to trade at $74 a barrel.
The decline in oil prices is attributed to the ongoing efforts to secure a short-term breakthrough that could pave the way for broader discussions between the US and Iran.
US Treasury Secretary Scott Bessent said that Washington and Tehran could reach an agreement to reopen the Strait of Hormuz as early as Tuesday or Wednesday, allowing commercial vessels to move freely through the waterway.