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Brent drops as talks progress on reopening the Strait of Hormuz
Brent fell almost 5% on Tuesday to under $80 a barrel, and both Brent and WTI moved to their lowest levels since July 13 on hopes shipments could resume later this week.
Oil prices slid as US officials said talks aimed at reopening the Strait of Hormuz were progressing, with Donald Trump warning Iran would face severe consequences if the waterway was not opened soon. BBC Business reported that Secretary of State Marco Rubio and Treasury Secretary Scott Bessent said discussions could allow shipments to resume later this week, potentially as soon as Tuesday or Wednesday.
Brent crude fell by almost 5% on Tuesday to under $80 a barrel, continuing lower on Wednesday, down about 0.7% in Asian trading. WTI also dropped more than 5% to around $76 a barrel, with both contracts reaching their lowest levels since July 13, according to the report.
The potential easing comes amid a volatile oil market driven by months of conflict and failed de escalation efforts, a dynamic that has left motorists facing higher fuel costs. US Central Command said the southern route through the Strait of Hormuz remains free and open for commercial vessels transiting the international waterway.
Rubio said progress had been made with Iran and Oman on getting more ships through the strait, while emphasizing no final agreement yet. The outlet also reported that Iran said it is not negotiating with the US and instead is discussing a new mechanism for vessels with Oman, a mediator in the talks.
Latest closeWTI crude $75.32 ▼6.2%|Brent $78.86 ▼5.9%