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macroAug 11, 2026, 2:57 PM

Oil Prices Erase Gains as US-Iran Deal Hopes Grow

Oil prices reversed a 3% rally after Pakistan signaled that the U.S. and Iran may be nearing an agreement to reopen the Strait of Hormuz, a critical chokepoint for global energy flows.

WTIBRENT

Oil prices gave back an intraday gain of 3% on Wednesday after Pakistan indicated that Washington and Tehran could be close to a deal that would reopen the Strait of Hormuz.

WTI crude fell back below $82 a barrel, while Brent traded around $88 as traders weighed the prospect of restored shipping against escalating regional tensions.

The strait typically handles around one-fifth of global oil and liquefied natural gas flows, making its reopening vital for stabilizing energy markets.

However, attacks and disruptions spanning from Iran to the Red Sea and Russia continue to threaten supply, keeping oil markets highly volatile.

Source: First Squawk