Oil Prices Rise Amid Uncertain US-Iran Diplomacy

Oil prices rose on August 4 as diplomatic efforts to end the US-Iran conflict continued without clear results. Front-month Brent futures increased by $1.04 or 1.24 percent to $84.81 a barrel, while US West Texas Intermediate (WTI) crude gained $0.30 or 0.37 percent at $80.64 a barrel.

The rise in prices followed a decline of 7 percent in the previous session to a three-week low. The uncertainty surrounding the conflict and potential disruptions to oil flows through key shipping routes contributed to the market's volatility.

Goldman Sachs expects Brent to remain within the range of $80 to $90 per barrel until there is either confirmation of a new US-Iran agreement or a significant escalation in attacks and targets. The bank noted that physical oil markets are tightening, with global visible stocks decreasing by 6.3 million barrels per day over the past two weeks.

The Hormuz dispute remains a central issue in the talks, as it handles about one-fifth of global daily oil and liquefied natural gas supplies. Shipping traffic at key Gulf waterways held largely unchanged, but the Strait of Hormuz remains dangerous for vessels due to Iranian attacks on vessels.