Oil Prices Inch Higher on Hopes for US-Iran Deal and Hormuz Reopening

Oil prices edged higher in early Asian trading on Wednesday, August 5, as markets balanced hopes for a US-Iran agreement against lingering uncertainty over the future of shipping through the Strait of Hormuz.

Brent crude was at $79.61 a barrel, up 27 cents, or 0.34%, while WTI crude at $75.88 a barrel, up 11 cents, or 0.15%.

The modest gains followed a sharp selloff earlier in the week after President Donald Trump said he had halted plans for further attacks on Iran and that the two sides were working on the 'perimeters' of a deal that could reopen the strategic waterway.

Traders remain cautious, as the market's latest moves suggest they are not yet convinced that the geopolitical risk has disappeared.