Oil Prices Drop Sharply After US Raises Hopes Over Strait Of Hormuz Reopening
News world Oil Prices Drop Sharply After US Raises Hopes Over Strait Of Hormuz Reopening Oil Prices Drop Sharply After US Raises Hopes Over Strait
News world Oil Prices Drop Sharply After US Raises Hopes Over Strait Of Hormuz Reopening Oil Prices Drop Sharply After US Raises Hopes Over Strait Of Hormuz Reopening Published By, Last Updated: August 04, 2026, 22:51 IST Oil prices fell as Trump aide Scott Bessent expressed optimism about reopening the Strait of Hormuz. Wall Street and European markets gained. Oil prices dipped on Tuesday. (AI-Generated Image) Hours after US President Donald Trump’s aide, Scott Bessent, expressed optimism about the prospect of reopening the Strait of Hormuz, oil prices fell sharply on Tuesday. Earlier in the day, Bessent, the US Treasury Secretary, said a deal could be reached with Tehran by Wednesday to reopen the crucial waterway to shipping traffic. Wall Street extended its gains, with the Dow hitting a record closing high on Monday and the S&P 500 approaching a new peak.
European markets also strengthened, with Paris and Milan ending at record levels, while Frankfurt and Madrid extended their previous highs. Will Hormuz Reopen Soon? The rally followed a volatile week for technology stocks, driven by concerns over huge artificial intelligence investments and uncertainty about their broader economic returns. Stronger-than-expected earnings from companies including Palantir and Caterpillar further supported investor sentiment. However, uncertainty remained over the Strait of Hormuz, particularly after previous claims of an imminent US-Iran agreement failed to materialise. What Bessent Said Further, an unidentified projectile struck a cargo vessel in the maritime route on Tuesday, even as Trump said it could reopen within hours. Bessent later told CNBC, “I think there is a chance we may have a deal today or tomorrow to open the strait".
“So you know, I’d expect the energy prices to settle back down, which, as I said, will be good for the entire world," he added. “The market is now trying to price a more nuanced geopolitical path: lower risk of immediate military escalation, but no guarantee yet that the Strait of Hormuz returns to normal functioning," said Patrick Munnelly, market strategist at Tickmill Group, AFP reported. Energy Firms Gain Oil disruptions have benefited major energy companies. BP’s second-quarter profit more than doubled, although its shares fell nearly 5% amid expectations that the strong results had already been priced in. Saudi Aramco also reported a 44% rise in net profit. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit About the Author Manisha Roy Manisha Roy is a Senior Sub-Editor at News18.com's general desk.
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