Brent crude prices edged higher on Tuesday but remained under pressure from the previous session’s decline as investors monitored renewed diplomatic efforts between the United States and Iran for signs that tensions around the Strait of Hormuz could ease.
Brent crude rose to around $84.89 per barrel on August 4, 2026, gaining about 1.3% after falling sharply the previous day as markets reacted to expectations that progress in talks could improve oil flows through one of the world’s most important energy routes.
The market remains focused on developments around the Strait of Hormuz, which is a critical passage for global energy shipments. Any disruption to shipping through the route raises concerns about tighter global oil supplies and higher prices.
US President Donald Trump said his proposal for discussions represented Iran’s final opportunity to reach an agreement and expressed confidence that the strait could reopen soon. However, Tehran denied that direct negotiations with Washington were underway, although discussions involving Oman on improving shipping conditions were continuing.
The mixed signals have kept investors cautious. While the possibility of a diplomatic breakthrough has reduced some supply concerns, uncertainty over whether an agreement can be reached has prevented a major decline in oil prices.
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Other supply developments have also influenced market sentiment. OPEC+ approved another modest increase in production as part of efforts to restore output cuts introduced in 2023, adding more supply to the market.
Meanwhile, alternative export routes received support after Turkey and Iraq extended a key oil pipeline agreement, while Kazakhstan resumed crude flows through the Caspian Pipeline Consortium following a temporary disruption.
Impact on Ghana
The movement in global oil prices comes at a time when fuel prices in Ghana remain under pressure.
Recent increases at the pumps were driven by higher international crude oil and refined petroleum product prices, as well as exchange rate pressures affecting petroleum imports. The Chamber of Oil Marketing Companies (COMAC) attributed the latest adjustments to increases in crude oil prices, refined products and the depreciation of the Ghana cedi against the US dollar.
To cushion consumers, President John Dramani Mahama directed a temporary GH¢2.00 per litre reduction in the regulatory margin on diesel, effective August 4, 2026. The intervention is expected to provide short-term relief for diesel users, particularly transport operators and businesses that depend heavily on diesel.
However, the longer-term direction of fuel prices will depend largely on global oil market developments, especially whether US-Iran discussions ease tensions around the Strait of Hormuz, as well as movements in the cedi-dollar exchange rate.
