Oil Price Stabilises at $85 per Barrel
By Praisebell Rosemond Larbi
Global oil prices remained relatively stable on Tuesday as investors monitored renewed diplomatic efforts between the United States and Iran, with developments around the Strait of Hormuz continuing to influence market expectations over global crude supplies.
Brent crude, the international oil benchmark, traded at about US$84.89 per barrel on August 4, 2026, recovering 1.3 per cent after a sharp decline in the previous session. The rebound came as traders balanced optimism over possible diplomatic progress against lingering geopolitical risks in the Middle East.
The Strait of Hormuz remains at the centre of market attention because it is one of the world’s most important oil shipping routes. Any disruption to traffic through the waterway could significantly reduce global crude supplies and drive energy prices higher.
Market sentiment improved after United States President Donald Trump said discussions with Iran represented a final opportunity to reach an agreement and expressed confidence that the Strait of Hormuz could reopen fully. However, Iranian officials denied that direct negotiations with Washington were taking place, although talks facilitated by Oman on improving maritime security and shipping conditions are reportedly continuing.
The mixed signals have kept investors cautious. While hopes of diplomacy have reduced immediate fears of supply disruptions, uncertainty over the outcome of negotiations has prevented a significant decline in oil prices.
Supply developments have also supported the market. OPEC+ recently approved another modest increase in oil production as part of its gradual plan to restore output cuts introduced in 2023. In addition, Turkey and Iraq extended a key pipeline agreement, while Kazakhstan resumed crude exports through the Caspian Pipeline Consortium (CPC) following earlier disruptions.
Impact on Ghana
The movements in the international oil market come as fuel prices in Ghana remain under pressure.
Recent increases at the pumps have been driven mainly by higher global crude oil prices, rising refined petroleum product costs and exchange rate pressures affecting imports. The Chamber of Oil Marketing Companies (COMAC) has attributed the latest price adjustments largely to international market developments.
To ease the burden on consumers, President John Dramani Mahama has directed a temporary GH¢2.00 per litre reduction in the regulatory margin on diesel, effective August 4, 2026. The measure is expected to provide short-term relief for transport operators, businesses and industries that depend heavily on diesel.
However, analysts say the longer-term direction of fuel prices will depend largely on developments in the global oil market and the performance of the cedi against the US dollar. A successful diplomatic outcome between the United States and Iran could ease supply concerns and moderate crude prices, while renewed tensions could quickly push energy costs higher again.
