By Boluwatife Oshadiya | August 9, 2026
Key Points
- Brent crude fell 9.21% for the week to $81.81 per barrel as optimism over US-Iran diplomacy reduced geopolitical risk
- West Texas Intermediate (WTI) declined 9.4% to $76.71 per barrel, while expectations of higher OPEC+ supply added pressure
- A 2.5 million-barrel increase in US crude inventories reinforced expectations of a better-supplied market
Main Story
Oil prices fell more than 9% during the week as improving prospects for US-Iran diplomacy eased fears of supply disruptions through the Strait of Hormuz.
International benchmark Brent crude ended at $81.81 per barrel, down 9.21% from $90.11 a week earlier, while US benchmark West Texas Intermediate (WTI) declined 9.4% to $76.71 from $84.67.
The decline followed renewed optimism over diplomatic efforts between Washington and Tehran after US President Donald Trump said talks with Iran had resumed and were making progress.
The prospect of an agreement reducing risks around the Strait of Hormuz encouraged investors to unwind part of the geopolitical premium that had supported crude prices.
Supply expectations also weighed on the market. Major OPEC+ producers agreed to increase collective production by 188,000 barrels per day from September as the group continues to reverse voluntary production cuts introduced in 2023.
US inventory data added further pressure. Commercial crude inventories unexpectedly increased by about 2.5 million barrels during the week, contrary to forecasts for a decline.
Oil prices recovered some ground toward the end of the week as uncertainty around the Strait of Hormuz continued to provide a degree of support.
Iranian Deputy Foreign Minister Kazem Gharibabadi also indicated that discussions with Oman over future shipping arrangements in the strait were nearing completion, while reports of possible restrictions on vessels from countries Tehran considers hostile kept supply concerns in focus.
What’s Being Said
US President Donald Trump said negotiations with Iran had resumed and were making progress, a position that helped reduce the geopolitical risk premium in oil markets.
Iranian Deputy Foreign Minister Kazem Gharibabadi has separately said Tehran was working with Oman on arrangements for shipping through the Strait of Hormuz.
Current reporting, however, indicates that the status of direct US-Iran negotiations remains contested, with Iranian officials disputing some US claims about the talks.
What’s Next
Oil traders will watch developments around the Strait of Hormuz, particularly any agreement that could restore more normal shipping activity through the strategic waterway.
Markets will also monitor OPEC+ production increases and subsequent US inventory data for evidence of whether global supply conditions are loosening further.
The Bottom Line:
The sharp weekly decline shows that oil prices are responding to a combination of lower geopolitical risk and stronger supply expectations. However, continued uncertainty around the Strait of Hormuz means the market remains sensitive to any reversal in diplomatic or shipping developments.
