Reuters. Oil prices fell by around 4% on Tuesday (August 4) to a three-week low after comments by Qatar and U.S. Treasury Secretary Scott Bessent raised hopes for a diplomatic resolution to the Middle East conflict, which would improve oil flows through the Strait of Hormuz.
Front-month Brent futures fell $3.11, or 3.71%, to $80.66 a barrel by 1159 GMT after hitting a session high of $86.33. U.S. West Texas Intermediate (WTI) crude was down $3.58, or 4.46%, at $76.76 a barrel after touching a session high of $82.33. Both contracts fell to their lowest levels since July 13.
Earlier in the session, both benchmarks had risen more than 2% on uncertainty over prospects for a U.S.-Iran agreement.
Qatar Foreign Ministry spokesperson Majed Al Ansari said efforts to secure a diplomatic resolution to the conflict were continuing, with mediators including Qatar, Pakistan and Oman coordinating closely to facilitate negotiations and exchange draft proposals between the two sides.
U.S. Treasury Secretary Bessent said on Tuesday a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday. Bessent told CNBC he had seen "quite a few" ships exiting the Strait of Hormuz.
The Hormuz dispute is a central sticking point in talks. Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.
Oil prices rose earlier in the day after incidents in the strait and after a senior Iranian source told Reuters on Tuesday that Iran wants control over inbound shipping through the Strait of Hormuz and visibility over outbound traffic, with the ability to intervene if necessary, under a plan being discussed with Oman to reopen the strategic waterway.
