By Boluwatife Oshadiya | August 4, 2026, 4:30 PM
Key Points
- Brent crude climbed to $84.64 per barrel while WTI rose to $80.63 amid renewed geopolitical concerns.
- Investors remain cautious as US-Iran negotiations have yet to produce a concrete peace agreement.
- OPEC+ agreed to increase oil production by 188,000 barrels per day from September, limiting further price gains.
Main Story
Global oil prices advanced on Tuesday as uncertainty surrounding ongoing peace negotiations between the United States and Iran renewed concerns over potential supply disruptions from the Middle East.
International benchmark Brent crude for October delivery rose one percent to $84.64 per barrel, up from $83.77 in the previous session. Meanwhile, West Texas Intermediate (WTI) gained 0.5 percent to $80.63 per barrel, compared with $80.25 at Monday’s close.
The gains were driven largely by persistent concerns that hostilities in the Middle East could flare up again despite diplomatic efforts aimed at reaching a lasting agreement between Washington and Tehran. Investors also remained wary of security risks affecting commercial shipping routes, particularly through the Strait of Hormuz, a critical transit point for roughly one-fifth of global oil supplies.
Speaking at the White House after signing executive orders, US President Donald Trump said negotiations with Iran had resumed on Tuesday but accused Tehran of sending conflicting signals during the talks.
“Negotiations with Iran have resumed and are currently underway,” Trump said, adding that the discussions were taking place at Iran’s request with the support of Saudi Arabia, the United Arab Emirates, Qatar and other Gulf states.
However, expectations of additional crude supply from OPEC+ capped stronger price gains. According to a statement from the producers’ alliance, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman agreed to raise collective oil production by 188,000 barrels per day beginning in September as part of the gradual reversal of voluntary production cuts introduced in 2023.
The Issues
The latest price movement underscores how geopolitical developments continue to outweigh fundamental supply-demand factors in global oil markets. While diplomatic efforts have reduced immediate tensions, the absence of a definitive agreement between the US and Iran keeps traders focused on the risk of disruptions to crude exports from the Gulf. At the same time, OPEC+’s gradual production increases are intended to stabilise markets and prevent excessive price volatility.
What’s Being Said
“Negotiations with Iran have resumed and are currently underway,” Donald Trump, President of the United States, said, while noting that Gulf nations were supporting efforts to reach a lasting agreement.
Market participants, however, remain cautious as negotiations have yet to produce a breakthrough, leaving geopolitical risks firmly embedded in oil prices despite additional OPEC+ supply.
What’s Next
- Markets will closely monitor the outcome of ongoing US-Iran negotiations for signs of a formal agreement or renewed tensions.
- OPEC+ members are expected to implement the agreed 188,000 barrels-per-day production increase from September.
- Traders will continue watching shipping activity through the Strait of Hormuz for any developments that could affect global crude supply.
Bottom Line
The Bottom Line: Oil markets remain driven by geopolitical uncertainty rather than supply fundamentals. While OPEC+ is gradually restoring production, any setback in US-Iran negotiations could quickly outweigh additional supply and keep crude prices elevated
