U.S. Crude Drops 5.4% to $75.98 as Bessent Signals Strait of Hormuz Deal
Updated
Updated · The Associated Press · Aug 4
U.S. Crude Drops 5.4% to $75.98 as Bessent Signals Strait of Hormuz Deal
3 articles · Updated · The Associated Press · Aug 4
Summary
U.S. crude slid $4.36 to $75.98 a barrel Tuesday and Brent fell 4.9% to $83.87 after Treasury Secretary Scott Bessent said the U.S. and Iran may reach a deal within days to reopen the Strait of Hormuz.
About 20% of global oil normally moves through the strait, and a reopening would let tankers trapped in the Persian Gulf resume shipments after more than five months of conflict.
Even after the drop, U.S. crude remains more than 13% above pre-conflict levels, with the earlier surge lifting gasoline, jet fuel and diesel costs and causing fuel shortages and rationing in parts of Asia.
The price spike has also swelled oil-company earnings: Saudi Aramco posted $32.69 billion in second-quarter net profit, while Exxon Mobil and Chevron reported $14.5 billion and $12 billion, drawing criticism from President Donald Trump.
If Iran gains control and demands transit fees, will the reopening of the Strait of Hormuz actually keep global oil prices permanently high?
Can Oman's delicate diplomacy truly secure international shipping, or are global energy markets walking into a carefully orchestrated trap by Tehran?
With hidden minefields and damaged infrastructure remaining, is the celebrated diplomatic breakthrough in the Strait of Hormuz just an illusion of safety?