Oil slips for third day as Hormuz deal hopes ease supply concerns

Oil prices edged lower on Wednesday, extending losses for a third straight session as optimism grew that an interim agreement between the U.S. and Iran could be reached to restore shipping through the Strait of Hormuz.

As of 20:54 ET (00:54 GMT), Brent Oil Futures expiring in October fell 0.3% to $79.12 per barrel, while West Texas Intermediate (WTI) crude futures for September slipped 0.5% to $75.39 per barrel.

Both benchmarks had tumbled more than 5% on Tuesday, extending sharp losses from Monday.

Qatar said on Tuesday that an interim proposal had been drafted as mediators worked to narrow differences between Washington and Tehran.

U.S. President Donald Trump discussed efforts to de-escalate tensions with Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani in a phone call on Tuesday, according to Qatar’s government.

The proposal aims to restore navigation through the Strait of Hormuz, which normally carries about one-fifth of global oil and liquefied natural gas shipments.

The latest diplomatic push came after U.S. President Donald Trump said talks with Iran had begun and suggested Tehran had a “last chance” to reach an agreement.

Iran, however, has publicly denied that formal negotiations with Washington were taking place, highlighting the uncertainty surrounding the process.

Despite improving diplomatic signals, risks remain elevated. Another commercial vessel came under attack near the Strait of Hormuz on Tuesday, underscoring the fragile security situation in the region.

Industry data released late on Tuesday pointed to a build in U.S. crude stockpiles. The American Petroleum Institute (API) announced that crude oil inventories rose by 2.69 million barrels in the week ended July 31, compared with analysts’ expectations for a draw of about 2 million barrels.

The market is now awaiting official U.S. Energy Information Administration (EIA) data due later on Wednesday to confirm the inventory trend.