Oil Prices Slip for Third Day on Hormuz Deal Optimism
Oil prices edged lower on Wednesday, marking a third straight session of declines as market participants grew more hopeful that an interim agreement between the United States and Iran could soon restore shipping through the Strait of Hormuz. At 20:54 ET (00:54 GMT), Brent crude futures for October slipped 0.3% to $79.12 per barrel, while West Texas Intermediate (WTI) futures for September fell 0.5% to $75.39 per barrel. Both benchmarks had already dropped more than 5% on Tuesday, extending sharp losses that began on Monday.
Qatar announced on Tuesday that an interim proposal had been drafted as mediators worked to narrow differences between Washington and Tehran. U.S. President Donald Trump discussed de‑escalation efforts with Qatar’s Emir Sheikh Tamim bin Hamad Al‑Thani in a phone call, according to the Qatari government. The proposal seeks to restore navigation through the Strait of Hormuz, a chokepoint that normally carries about one‑fifth of global oil and liquefied natural gas shipments.
President Trump earlier said talks with Iran had begun and warned Tehran that it had a “last chance” to reach an agreement. Iran, however, publicly denied that formal negotiations with Washington were taking place, underscoring the uncertainty surrounding the diplomatic process.
Despite the improving diplomatic signals, security risks remain elevated. A commercial vessel was attacked near the Strait of Hormuz on Tuesday, highlighting the fragile situation in the region.
Industry data released late on Tuesday showed a build in U.S. crude inventories. The American Petroleum Institute (API) reported that crude oil stocks rose by 2.69 million barrels in the week ended 31 July, contrasting with analysts’ expectations for a draw of roughly 2 million barrels. The market now awaits official data from the U.S. Energy Information Administration (EIA), scheduled for release later on Wednesday, to confirm the inventory trend.