US-Iran Talks Resume on Strait of Hormuz
Talks between the US and Iran on reopening the Strait of Hormuz are set to resume on August 4, after President Donald Trump confirmed the development. The move marks a sharp reversal from last week's tensions, which had raised fears of all-out war.
The US and Iran have been at odds over control of the strait, with Washington arguing that Tehran should have no role in passage through the waterway. However, Iranian Foreign Minister Abbas Araghchi stated that ongoing negotiations with Oman over vessel transit have entered the final stage, with a potential third shipping lane gaining traction.
The development has led to a decline in international oil prices, with Brent and West Texas Intermediate front-month futures falling more than 5% intraday. OPEC+ also agreed to raise output by 188,000 barrels a day starting next month.