Oil prices dive on hopes that a deal to reopen the Strait of Hormuz will be made soon Nora Redmond Tue, August 4, 2026 at 12:46 PM PDT 2 min read CL=F TMUBMUSD10Y NQ00 ES00 Treasury Secretary Scott Bessent said a deal between the U.S. and Iran could be reached by Tuesday or Wednesday to reopen the Strait of Hormuz. - MarketWatch photo illustration/Getty Images, iStockphoto Oil prices turned sharply lower on Tuesday as a Qatari official and the U.S. treasury secretary talked about a potential short-term deal between the U.S. and Iran that would possibly reopen the Strait of Hormuz. Majed al-Ansari, Qatar's foreign ministry spokesperson, was quoted as saying talks between the U.S. and Iran are "ongoing" and that the focus is on de-escalation and reopening the key waterway. Most Read from MarketWatch If I marry my girlfriend, 67, will she lose her Supplemental Security Income and divorced spouse benefits? The S&P 500 just hit a new high. 'Big Short' investor Michael Burry thinks it could bring a 1987-style fall. Retail investors are buying the dip on SpaceX's stock before more shares flood the market 'I don't wish to be cold-hearted': My elderly relative can no longer care for himself. Am I wrong to leave his care to the state? However, no direct talks are happening, according to the spokesperson. Speaking on CNBC, Treasury Secretary Scott Bessent said a deal between the warring parties could be reached Tuesday or Wednesday. He said the talks are aimed at opening the strait and moving toward a "more normalized position." Brent crude's contract for October delivery BRN00 BRNV26 dropped $4.41, or 5.3%, to $79.36 a barrel, according to Dow Jones Market Data, to reverse an earlier gain of as much as 3.1%. The futures have shed 11.9% over the past two sessions. Earlier in Tuesday's sessions, the futures had traded as high as $86.33 a barrel, according to FactSet data. The West Texas Intermediate's September contract CL.1 CLU26, up as high as $82.33 in morning trading, fell 5.6% to $75.87 a barrel. The drop in crude oil prices fueled a further rally in stocks, and provided a boost to bond prices. The Dow Jones Industrial Average DJIA shot up more than 1,000 points in recent afternoon trading toward back-to-back record closes, while the S&P 500 index SPX climbed 2% toward its first record close since June 2. The technology friendly Nasdaq Composite COMP powered up 2.9%. And the yield on the 10-year Treasury note BX:TMUBMUSD10Y fell from 4.68% before Bessent's comments to 4.62% in recent trading. Yields and bond prices move in opposite directions. Prior to the comments, crude prices had been higher on news that, on Monday night, a ship reported being hit by an "unknown projectile" in the strait near Al Khasab on Oman's coast, according to the United Kingdom Maritime Trade Operations Center. Where the vessel originated from and what cargo it was carrying were not revealed, and no group has taken accountability for the reported attack. UKMTO...
🔥 EXCLUSIVE PARTNER OFFER
Baseus Wireless Car Air Pump Portable Air Compressor for Car Motorcycles Bicycle Electric Tire Inflator with LCD Digital Display
Special Price
✨ Special deal alert! Don't miss this amazing product with top-rated reviews worldwide.
Affiliate link — Commission earned at no extra cost to you
© EcoNews DZ — Global Economic & Financial News
Comments
Post a Comment