Oil prices dropped to a three-week low on Tuesday, 4 August 2026, as senior US officials expressed optimism about a potential deal with Iran to reopen the Strait of Hormuz waterway. Brent crude, the global benchmark, fell by almost 5% to under $80 a barrel, while US West Texas Intermediate prices were down more than 5% to $76 a barrel. Both contracts reached their lowest levels since 13 July.
US Secretary of State Marco Rubio stated that progress had been made in discussions with Iran and Oman regarding increased ship passage through the Strait, though a final agreement had not yet been reached. Treasury Secretary Scott Bessent suggested a deal to reopen the Strait could be agreed as soon as Tuesday or Wednesday, telling CNBC there was a "chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict."
The Strait of Hormuz has been a key point in negotiations between the US and Iran. Before the conflict began in late February, the waterway was responsible for approximately one-fifth of global daily oil and liquefied natural gas supplies. While US officials have announced progress, no details about the potential deal have been released.