Qatar says mediation advances toward ending US-Iran conflict
- Qatar says indirect U.S.-Iran talks are in “very progressive stages”, but no final deal yet.
- Brent crude fell more than 5% to around $79 a barrel on hopes of reopening the Strait of Hormuz.
- Trump claims talks with Iran have started; Tehran denies direct negotiations, citing only Oman-mediated talks on shipping.
- Mediators—Qatar, Pakistan, Oman—are exchanging draft proposals aimed at safe transit and de-escalation.
- The strait remains largely closed; only a few vessels passed through Tuesday amid security concerns.
- A successful deal could lower oil prices and ease global shipping; failure risks renewed spikes and rerouting costs.
DUBAI/WASHINGTON, Aug 4 (Reuters) — Qatar said on Tuesday mediators were making progress in efforts to end the U.S.-Iran war, driving oil prices lower, although Tehran has denied President Donald Trump’s assertion that talks are already under way.
Benchmark Brent crude fell more than 5% after the comments from Qatar, extending Monday’s steep losses on hopes that an arrangement could soon be reached to restore traffic through the blockaded Strait of Hormuz.
The U.S. president’s comments on Monday followed his weekend decision to cancel plans for what he described as “massive attacks” on Iran, extending a pattern in which he has threatened major military action before pulling back and pointing to diplomatic contacts.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said talks with Oman over transit through the strait were positive and continuing, focused on establishing safe shipping lanes, state media reported. He added the route being negotiated was aimed at ensuring the sovereign rights and national security of both Iran and Oman.
Senior U.S. officials struck an optimistic tone, with Treasury Secretary Scott Bessent and Secretary of State Marco Rubio both pointing to progress in discussions aimed at reopening the strait, a corridor that normally carries about a fifth of global oil and liquefied natural gas shipments.
He said mediators including Qatar, Pakistan and Oman were coordinating closely to facilitate negotiations and exchange draft proposals between Washington and Tehran.
Market reaction was swift. Brent crude futures slid to a three-week low, settling around $79 a barrel, as traders priced in the possibility of a deal that could ease shipping disruptions. Even so, analysts warned that without a final agreement and visible movement of tankers through Hormuz, the rally in oil could be short-lived.
On the ground, the picture remains tense. Shipping data showed only a handful of vessels transiting the strait on Tuesday, down from recent days, as insurers and captains continue to treat the passage as high risk. The threat of attacks—whether by Iranian forces, regional proxies or in the crossfire of wider strikes—has kept many companies rerouting around the Cape of Good Hope, adding time and cost to global trade.
For ordinary people, the stakes are simple: a deal that reopens Hormuz could mean lower fuel prices and calmer markets; a breakdown could mean the opposite, with ripple effects from petrol pumps to power bills. That is why every statement from Doha, Muscat or Washington is being read so closely.