Oil prices fall on hopes Strait of Hormuz could reopen

Oil markets took a sharp dip to a three‑week low after U.S. officials said talks with Iran and Oman are moving toward a quick reopening of the Strait of Hormuz, a critical artery that carries about one‑fifth of global oil and liquefied natural gas.

The U.S. Secretary of State Marco Rubio stated the conversations had “progressed” and that a deal could be reached “very shortly.” Meanwhile, Treasury Secretary Scott Bessent told CNBC that a solution might be sealed as early as Tuesday or Wednesday, potentially enabling ships to pass again. These remarks came amid a backdrop of stalled negotiations and heightened market volatility caused by ongoing U.S.–Iran tensions.

Brent Crude’s benchmark price fell nearly 5%, dropping to just under $80 a barrel, while U.S. West Texas Intermediate (WTI) slipped more than 5% to $76 a barrel, its lowest level since July 13.

Globally, the Strait has been a flashpoint in diplomatic talks and a primary source of uncertainty for energy traders. No concrete details of a potential agreement—such as restrictions on shipping fees or passage requirements—have been released, leaving markets waiting for further clarification.

If the Strait reopens, it could ease supply cuts that have driven fuel prices higher at the pumps and potentially stabilize the global energy market.