Why Brent Crude Oil (BRENTOIL) fell 5.77% on August 4, 2026

Brent Crude Oil (BRENTOIL) fell 5.77% on August 4, 2026 — Iran-Oman deal eases Hormuz risk premium.

Brent crude fell 3.8% as Iran and Oman near a shipping accord that could alter risk calculations around the Strait of Hormuz, the world's most critical chokepoint.

A deal reopening or neutralizing Hormuz shipping removes the geopolitical risk premium embedded in oil — traders price out the supply disruption scenario that has kept crude elevated on Middle East tension.

The Oil & Geopolitics cycle has been driven by conflict fear and supply fears, but Iranian diplomacy signaling a return to stable transit flows cools the geopolitical premium; demand growth remains sluggish anyway, so…

Any failure to finalize the reopening, renewed tanker attacks, or escalation of regional conflict would snap the premium back — crude is still hostage to Hormuz risk.