Iran04 August, 20262 min read
Oil Prices Fall as U.S. Officials Say Strait of Hormuz Deal With Iran Is Near
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Oil prices fell as hopes rose for reopening the Strait of Hormuz. U.S. officials said talks progressed toward allowing Hormuz shipments to resume soon.
The Guardian was read line by line by the Watchdog: 4.9. See the score →
Hormuz talks and attacks
Oil prices fell on Tuesday as senior U.S. officials raised hopes of a deal with Iran to reopen the Strait of Hormuz, with Brent crude falling by almost 5% to under $80 and West Texas Intermediate down more than 5% to $76. Qatar said mediators were making progress in efforts to end the U.S.-Iran war and that Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani discussed narrowing differences between Washington and Tehran during a phone call on Tuesday, Qatar's Emiri office said.
Even as talks were discussed, the strait remained virtually shut, with another ship coming under attack while trying to cross it, and a cargo vessel reported being struck by an unidentified projectile near the Strait of Hormuz off Oman's coast, according to UK Maritime Trade Operations (UKMTO). The Reuters account said the crew abandoned the vessel and one seafarer was missing, while BBC coverage tied the price drop to expectations that shipments could potentially resume as soon as this week.
Rubio, Bessent, and denial
U.S. Secretary of State Marco Rubio told reporters at the State Department, "There's been progress made in those talks, but not finality yet," while Treasury Secretary Scott Bessent said, "there is a chance we may have a deal today or tomorrow to open the strait."
Iran denied U.S. President Donald Trump's assertion that talks were already under way, and the CBC account said Iranian officials insisted no negotiations with the United States were taking place.
Instead, CBC reported that Iran's Foreign Ministry spokesperson Esmaeil Baghaei spoke only of talks with Oman over transit through the Strait of Hormuz, saying they had been positive and were continuing, focused on designating safe inbound and outbound lanes.
The BBC added that Qatar, which it described as a key mediator between Washington and Tehran, said it was continuing efforts with other mediators but admitted no direct talks were currently planned, even as Rubio and Bessent described progress.
What a deal could change
Regional officials told The Associated Press that under an emerging agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, with service fees charged for providing security and preserving the maritime environment. AP said any deal could be linked to lifting the U.S. blockade on Iran’s ports, and it quoted an Iranian Foreign Ministry spokesman, Esmail Baghaei, saying the bilateral talks with Oman were focused on "establishing safe inbound and outbound shipping lanes" and upholding sovereign rights.
The CBC account said Iran has halted most traffic through Hormuz while Washington maintains a blockade of Iran-related shipping and ports, and it described Yemen's Iran-aligned Houthis imposing a naval blockade on Saudi Arabia in the Red Sea, further restricting oil export routes. The Guardian framed the stakes as the strait being the portal for a fifth of the world’s oil and liquefied natural gas, while also reporting that Qatar’s foreign ministry spokesperson Majed al-Ansari said diplomatic contacts had reached "very progressive stages" as mediators exchanged draft proposals between Washington and Tehran.