Jakarta, ThedailyID — Global oil prices fell 2% on Wednesday (August 26, 2026), extending losses from the previous session as markets responded to hopes of renewed navigation through the Strait of Hormuz.
Brent crude futures fell US$1.78, or 2%, to US$86.80 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude dropped US$1.49, or 1.8%, to US$80.87 per barrel.
Both benchmarks had already fallen more than 3% on Tuesday (August 25).
Analysts said hopes for progress in talks between Iran and Oman contributed to the sell-off. The two countries have discussed arrangements for ship traffic through the Strait of Hormuz, a key route for global energy supplies.
“Markets continue to respond to developments regarding navigation through the Strait of Hormuz,” Fujitomi Securities analyst Mitsuru Muraishi said, according to Reuters, Wednesday (26/08).
Iran and Oman said Tuesday that they had discussed establishing a temporary navigation corridor through the strait. They also agreed to conduct mine-clearing operations along the route.
Still, uncertainty surrounding the conflict continues to limit the decline in oil prices. Some investors have also used the recent drop as an opportunity to buy.
The United States has also begun returning personnel to several diplomatic missions in the Middle East after previously reducing operations because of tensions with Iran.
The move could signal that Washington sees a lower risk of an immediate escalation, although several US embassies will initially operate with limited capacity.
