Crude Oil Steadies as Market Assesses US-Iran Peace Efforts and Strait of Hormuz Developments | August 5, 2026

Oil prices steadied on Wednesday, August 5, 2026, after recording significant losses over the previous two trading sessions, as investors assessed diplomatic efforts to end the conflict between the United States and Iran and restore shipping through the Strait of Hormuz, as per news reports. 

Brent crude futures rose US$0.26, or 0.33%, to US$79.62 per barrel, while US West Texas Intermediate (WTI) crude gained US$0.12, or 0.16%, to US$75.90 per barrel. Despite the modest recovery, market sentiment remained cautious following recent sharp declines. 

Peace Talks Keep Oil Markets on Edge 

Oil prices came under pressure after Qatar stated that mediators were making progress towards ending the conflict. The comments fuelled expectations of easing geopolitical tensions, although Iran denied US President Donald Trump's claim that negotiations with Washington were already underway. 

Brent crude settled below US$80 per barrel on Tuesday for the first time since 13 July, extending losses of more than 5% after optimism grew over a possible diplomatic breakthrough. 

Strait of Hormuz Remains in Focus 

The Strait of Hormuz remains a critical route for global energy supplies, with around 20% of the world's oil and liquefied natural gas passing through the waterway before the conflict began. Concerns over disruptions had pushed oil prices sharply higher earlier this year. 

Qatar confirmed that President Donald Trump and Emir Sheikh Tamim bin Hamad Al Thani discussed efforts to bridge differences between Washington and Tehran and improve the prospects for a lasting agreement during a telephone conversation. 

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Inventory Data Awaits Confirmation 

As per news reports, market participants are also watching US inventory data. According to the American Petroleum Institute, US crude oil inventories increased by approximately 2.7 million barrels last week, while gasoline stocks also rose and distillate inventories declined. 

Investors now await official inventory figures from the US Energy Information Administration, which could provide fresh direction for oil prices. 

Conclusion 

Oil markets remain highly sensitive to geopolitical developments and supply updates. Progress in US-Iran negotiations, the future of shipping through the Strait of Hormuz and upcoming US inventory data are expected to remain the primary drivers of crude oil prices in the near term. 

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