Crude Oil Prices Slip as US-Iran Peace Hopes Weigh on Market; Brent Below $80 | Commodity Market Today

Crude oil prices traded lower on Thursday as investors assessed signs of progress in talks involving Iran and Oman that could eventually lead to a US-Iran agreement and the reopening of the Strait of Hormuz.

At around 9:30 am, Brent crude futures were down 0.5% at $79.08 a barrel, while US West Texas Intermediate (WTI) fell 0.7% to $74.69 a barrel. Brent had ended marginally higher in the previous session, while WTI settled slightly lower.

Why Are Crude Oil Prices Falling Today?

Oil prices came under pressure after reports suggested that negotiations involving Iran and Oman had made progress, raising hopes that commercial shipping through the Strait of Hormuz could resume without major disruptions.

According to a Reuters report, the proposed arrangement could allow Iran to oversee vessels entering the Gulf through the strategic waterway. While US President Donald Trump has said an agreement is close, US officials have maintained that Washington would not support Iran taking control of one of the world's most important energy trade routes.

Even as diplomatic efforts gathered pace, geopolitical risks remained elevated. Iran warned Gulf nations that any fresh US military action could trigger retaliatory strikes on energy infrastructure across the region.

Separately, Yemen's Iran-backed Houthi rebels claimed missile attacks on Saudi oil tankers near Yanbu in the Red Sea and in the Gulf of Aden. Saudi Arabia has not confirmed the incidents, but traders continue to monitor the impact of such attacks on regional shipping.

US Crude Inventory Build Adds Pressure

The US Energy Information Administration (EIA) reported that crude oil inventories rose by 2.5 million barrels to 407 million barrels in the week ended July 31. Analysts had expected a drawdown of about 1.5 million barrels.

The increase reflected slightly lower refinery activity and higher crude imports, suggesting supply remains comfortable despite geopolitical tensions.

Oil Market Awaits Fresh Direction

Markets are likely to remain sensitive to developments around the Strait of Hormuz over the coming days.

While progress in diplomatic talks has reduced immediate concerns over supply disruptions, uncertainty remains over whether an agreement can be reached and implemented. Any setback in negotiations or disruption to shipping routes could quickly change sentiment in the oil market.

Investors will also continue to monitor US economic data for signals on fuel demand and the Federal Reserve's interest-rate outlook, both of which remain key drivers for crude prices.

MCX Crude Oil Technical Outlook

According to Kotak Neo Commodity Research, MCX Crude Oil (August) has immediate support at ₹7,000, followed by ₹6,905 and ₹6,596. On the upside, resistance is placed at ₹7,308, ₹7,403 and ₹7,712. The recommended buying zone is around ₹6,905, while the selling zone is seen near ₹7,403.

The firm said prices are likely to remain range-bound unless there is a fresh geopolitical trigger. Traders are expected to keep a close watch on developments around the Strait of Hormuz, movement in global crude inventories and any further updates from US-Iran negotiations, as these factors could determine the next move in oil prices.

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