Oil Prices Tumble on Hopes of Strait of Hormuz Deal

Oil prices continued their downward trend on August 5, falling further due to growing optimism that a deal could reopen the Strait of Hormuz and release supply currently held up in the Arabian Gulf.

Brent crude slipped around the $79 a barrel range, trading at $79.14, while West Texas Intermediate fell 0.9% to $75.06, adding to losses after already dropping more than 10% over the previous two sessions.

The optimism stems from an interim proposal drafted by Qatar, which suggests progress in talks between Washington and Tehran to reopen the waterway.

Diplomats said Iran was considering allowing European nations to help clear mines from the strait, a further sign of progress according to a Bloomberg report.