Oil prices slip as Iran-Oman talks raise hopes for Hormuz reopening

August 06, 2026 (MLN): Oil prices declined on Thursday as investors weighed reports of progress in talks between Iran and Oman that could help pave the way for a broader U.S.-Iran peace agreement and the reopening of the Strait of Hormuz, easing concerns over global energy supplies.

Currently, Brent crude futures is up, 0.19%, at $79.60 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $0.09, or 0.12%, to $75.31 per barrel by [02:14 am] PST.

Market sentiment weakened after reports suggested the negotiations were advancing, prompting investors to reassess geopolitical risk premiums that had supported oil prices in recent months.

Crude prices have largely retreated to levels seen after the United States and Iran reached an interim peace agreement on June 17. Markets are now focused on whether both sides can conclude a permanent settlement.

A proposal aimed at ending the conflict would reportedly grant Iran authority over vessels entering the Gulf through the Strait of Hormuz, according to a senior Iranian source and two regional officials cited by Reuters.

If confirmed, the arrangement would represent one of Tehran’s most significant diplomatic gains during the negotiations.

The United States has not officially commented on the reported proposal.

While President Donald Trump has expressed optimism that an agreement to reopen the strategic waterway is close, U.S. officials have consistently maintained that Washington would not support Iran controlling access to the vital global energy shipping route.

Despite optimism surrounding the negotiations, geopolitical risks remain elevated. Iran has warned Gulf countries that any future U.S. military strike on its territory would trigger retaliatory attacks on critical regional energy infrastructure, according to sources familiar with the matter.

Adding to supply security concerns, Yemen’s Iran-backed Houthi movement claimed responsibility for missile attacks targeting Saudi oil tankers near Yanbu on the Red Sea and in the Gulf of Aden on Wednesday. Saudi authorities had not confirmed the incidents at the time of reporting.

Separately, oil prices also came under pressure after U.S. government data showed an unexpected increase in crude inventories.

The U.S. Energy Information Administration (EIA) reported that crude stockpiles rose by 2.5 million barrels to 407 million barrels in the week ended July 31, compared with analysts’ expectations of a 1.5-million-barrel decline.

The increase was attributed to slightly lower refinery activity and higher crude imports.

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