Oil Prices Fell By More Than 12%

• 5.08.2026, 9:59

The week was filled with optimism amid the negotiations between the U.S. and Iran.

Oil prices continue to fall amid possible progress in negotiations between the U.S. and Iran.

This was reported by Reuters.

It is noted that oil prices continued to fall after a sharp drop during the previous two trading sessions, as investors anticipate success in efforts to end the war with Iran and resume traffic through the blocked Strait of Hormuz.

As of today, Brent crude oil futures fell by 92 cents, or about 1.2%, to $78.44 per barrel. Over the past week, they have fallen by more than 12%.

U.S. West Texas crude oil futures lost $1.07, or 1.4%, falling to $74.70 per barrel, and have dropped by more than 11% this week.

Qatar stated on Tuesday, August 4, that mediators are making progress in efforts to end the war, which is leading to a decline in oil prices, although Tehran denies U.S. President Donald Trump’s claim that negotiations are ongoing.

Yesterday, the price of Brent crude closed below $80 per barrel for the first time since July 13, falling by more than 5%.

“If diplomatic efforts fail and physical shipments eventually cease, the current price decline may prove to be short-lived, as the drawdown in inventories will amplify the impact of any such development,” - noted Priyanka Sachdeva, head of market research at Phillip Nova.

Before the war with Iran began, about 20% of the world’s oil and liquefied natural gas passed through the Strait of Hormuz. In March, prices rose by 50%.

“The main sticking point appears to be whether Iran will insist on a certain degree of control over the waterway and whether the U.S. will back down from its position and agree to such a scenario,” analysts at IG believe.

As a reminder, Axios reported that the U.S. intends to announce an agreement with Iran as early as today, which would reopen the Strait of Hormuz.