Oil prices continued to decline on Wednesday, marking a third straight session of losses as market participants grew more optimistic 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 delivery fell 0.3 percent to $79.12 per barrel, while West Texas Intermediate (WTI) crude futures for September delivery slipped 0.5 percent to $75.39 per barrel. Both benchmarks had previously dropped more than 5 percent on Tuesday, extending the sharp declines that began on Monday.
Qatar announced on Tuesday that an interim proposal had been drafted by mediators seeking to narrow differences between Washington and Tehran. The proposal is intended to re‑enable navigation through the Strait of Hormuz, a chokepoint that normally carries about one‑fifth of global oil and liquefied natural gas shipments. U.S. President Donald Trump discussed de‑escalation efforts with Qatar’s Emir Sheikh Tamim bin Hamad Al‑Thani in a telephone conversation on Tuesday, according to the Qatari government. Earlier, President Trump had said talks with Iran had begun and warned Tehran that it had a “last chance” to reach an agreement. Iran publicly denied that formal negotiations with Washington were taking place.
Despite the improving diplomatic signals, security risks remained elevated. A commercial vessel was attacked near the Strait of Hormuz on Tuesday, underscoring the fragile situation in the region.
Industry data released late on Tuesday showed a build in U.S. crude inventories. The American Petroleum Institute reported that crude oil stocks rose by 2.69 million barrels in the week ended 31 July, contrary to analysts’ expectations for a draw of roughly 2 million barrels. The market now awaits the official U.S. Energy Information Administration (EIA) report, scheduled for later on Wednesday, to confirm the inventory trend.
Overall, the combination of diplomatic optimism, a recent vessel attack, and unexpected inventory buildup kept oil market participants cautious, with prices edging lower amid lingering supply‑risk concerns.