Oil Prices Plummet as Strait of Hormuz Deal Hopes Rise
Oil prices continued their downward trend on August 5, as growing optimism about a deal to reopen the Strait of Hormuz sparked hopes for increased supply. Brent crude slipped below $79 a barrel, trading at $79.14, while West Texas Intermediate fell by 0.9% to $75.06.
The losses come after US President Donald Trump announced he had postponed new strikes on Iran, allowing negotiations more time to progress. Diplomats said Iran was considering allowing European nations to help clear mines from the strait, a significant development in talks between Washington and Tehran.
US crude inventories rose by 2.7 million barrels last week, with stockpiles at Cushing, Oklahoma, increasing by 2.4 million barrels. The previous US-Iran ceasefire had collapsed within a month over the Hormuz issue, leading to a roughly $32 swing in Brent as fighting resumed and spread to the Red Sea.