Brent crude, the international benchmark for crude oil trading, fell nearly 5% to below $80 a barrel, while U.S. West Texas Intermediate (WTI) crude lost more than 5% to trade around $76 a barrel. Both contracts hit their lowest levels since July 13.
The decline came after US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent said negotiations to restore commercial shipping in the Strait of Hormuz were making progress. They said a deal could be reached within days, allowing shipping to resume in one of the world's most important energy routes.
Rubio said that talks with Iran, through the mediation of Oman, have advanced, although there is still no final agreement. Bessent also stated that there is a possibility that an agreement could be finalized very soon, restoring freedom of movement for commercial ships.
On the other hand, Iran has denied that it is conducting direct negotiations with the United States, emphasizing that communication is taking place only through Oman. Iranian authorities described the process of discussions on the creation of a new mechanism that guarantees the safe passage of ships in the Strait of Hormuz as positive.
The Strait of Hormuz is one of the most important arteries of global energy trade, as about a fifth of the world's oil and liquefied natural gas supplies pass through it. Any tension in this area has an immediate impact on international energy prices and the cost of fuel for consumers.
Analysts say markets remain cautious, as previous negotiations between the parties have failed several times. However, recent signs of progress have eased pressure on the oil market and have also had a positive impact on US stock markets.
Meanwhile, US President Donald Trump warned that Iran has "last chance" to reach a deal that would allow commercial shipping to return to the Strait of Hormuz, adding that he had suspended planned attacks to give diplomacy a chance.
