Oil Prices Slide as Strait of Hormuz Peace Hope Calms Markets

Oil prices slipped sharply as progress in Iran‑Oman talks revived hopes for a broader US‑Iran peace settlement.

Diplomatic Signal from the Strait and Market Reaction

Advances in the Iran‑Oman dialogue have bolstered expectations that the Strait of Hormuz could reopen to commercial shipping. The resulting optimism trimmed the risk premium, prompting a sell‑off in crude markets.

Brent and WTI Price Moves at a Glance

■Brent futures fell 0.5% to $79.08 per barrel.

■US West Texas Intermediate (WTI) slipped 0.7% to $74.69 per barrel.

■The previous session saw Brent eke out a modest gain while WTI closed with a slight decline.

Lingering Geopolitical Risks in the Region

The proposal to hand over control of the Strait to Tehran has been firmly rejected by Washington, keeping tension alive. Meanwhile, Yemen's Houthi militants claim missile attacks on Saudi tankers, sustaining uncertainty over Red Sea shipping routes.

Surprise US Crude Stock Build Reported by EIA

■According to the Energy Information Administration, US crude inventories rose 2.5 million barrels to 407 million barrels for the week ending July 31.

■Analysts had forecast a draw of 1.5 million barrels, making the unexpected build a signal of stronger supply.

Markets have priced the potential shift in Hormuz control as a modest downward pressure on prices, while Houthi attacks and ongoing regional tension preserve a risk premium for carriers reliant on Middle‑East sea lanes. The surprising US stock increase hints at a softening demand side, but the durability of diplomatic optimism and any concrete US‑Iran peace agreement will be decisive for price stability.