Optimism Over Hormuz Deal Pushes Oil Toward US$75
Oil prices weakened again during Wednesday's trading (Aug 5) as the market grew increasingly optimistic that the United States, Iran, and Oman were nearing an interim agreement to regulate shipping in the Strait of Hormuz. Brent fell 0.74% to US$78.77 per barrel, while WTI dropped 1% to US$74.93 per barrel.
The draft currently under discussion would direct inbound vessels through Iranian waters, while outbound vessels would use a route near Oman, coordinated with Tehran. The interim deal is expected to remain in effect for 60 days, although issues regarding route control, security guarantees, and transit mechanisms remain hurdles.
US President Donald Trump stated that talks were proceeding very well, while Treasury Secretary Scott Bessent assessed that an agreement could be reached soon. However, there has been no official announcement, and previous negotiations have failed following renewed hostilities near the shipping lanes.
Oil prices briefly rebounded after the Houthis claimed to have attacked a Saudi tanker near Yanbu. However, the gains were short-lived as optimism regarding the opening of the Strait of Hormuz remained the dominant sentiment. Additional downward pressure stemmed from an unexpected rise in US crude oil inventories—up by approximately 2.5 million barrels—indicating higher-than-forecast domestic supply.
Newsmaker Analysis: Oil sentiment remains bearish as progress continues on the Hormuz deal. With Brent holding below US$79, it may test the US$78–US$77 range, while WTI could slide toward US$74–US$73. Conversely, a breakdown in negotiations or fresh attacks on vessels could push Brent back to US$80.50–US$82 and WTI to US$76.50–US$78.
Source: Newsmaker.id
