WTI Crude Prices Plummet Under $80 as Hormuz Talks Gain Traction

West Texas Intermediate (WTI) crude prices have fallen under $80 per barrel after reports of efforts to reopen maritime traffic through the Strait of Hormuz and signs of US-Iran de-escalation. This development has put pressure on oil prices, with WTI trading near $79.50 as of writing.

The drop in prices comes despite a 1.9 million barrel increase in crude inventories expected for the week of August 21, according to consensus estimates from the US Energy Information Administration (EIA). This would mark the fourth consecutive weekly increase in US crude stocks.

Market participants have been interpreting the news on Hormuz and the US-Iran thaw as reducing immediate supply risks, weighing on oil prices. Strategists at Danske Bank noted that the latest round of US sanctions on Iran has not reversed the downward trend in oil prices.