Oil prices fall for third straight day as Hormuz deal hopes grow
Photo: Despite the drop in prices, uncertainty persists (Getty Images)
Oil prices continued their downward trend after Iran announced that it was close to reaching an agreement with Oman regarding the Strait of Hormuz, according to Bloomberg.
West Texas Intermediate crude oil was trading around $75 per barrel after falling 11% over the first three days of this week.
Meanwhile, Brent crude oil closed Wednesday at over $79 per barrel.
Prices fell amid optimism about a possible agreement to resume shipping through the Strait of Hormuz.
Iran stated on Wednesday that a joint statement by both countries (Iran and Oman) is under consideration, and an agreement will be reached if third parties do not interfere with the process.
In addition, US President Donald Trump also reiterated on Wednesday that a deal was imminent.
At the same time, uncertainty persists, so traders are in no hurry to fully close out their long positions, as they fear that a sudden escalation of the conflict could catch them off guard.
What else important to know
On Wednesday, August 5, Axios reported that the US planned to announce an agreement that day to reopen the Strait of Hormuz.
According to sources, the agreement will be concluded directly between Iran and Oman. This document sets out certain rules for passage through the strait, and the agreement meets some of Tehran’s demands.
On August 5, a representative of the Iranian Foreign Ministry publicly stated that Iran and Oman had reached an understanding regarding the geographical coordinates of the shipping route through the Strait of Hormuz.
