Brent drops 2% to $86.80 on hopes of Hormuz Strait reopening

Crude oil benchmarks fell further on Wednesday, August 26, pressured by renewed negotiations between Iran and Oman aimed at restoring maritime shipping routes through the Strait of Hormuz.

Brent crude futures shed $1.78, or 2.0%, to trade at $86.80 a barrel, while US West Texas Intermediate (WTI) slipped $1.49, or 1.8%, to $80.87 a barrel. Diplomatic discussions focus on mine clearance operations and the establishment of a temporary joint navigation corridor across the chokepoint, which historically handled roughly a fifth of global petroleum and LNG flows.

The latest confirmed physical quote for Russia's flagship Urals grade stood at $68.41 per barrel on August 25, reflecting a 2.7% decline.

N.Tebrizli