.png)
OIL prices fell for a fourth consecutive session on Thursday as easing tensions around the Strait of Hormuz reduced immediate concerns over global energy supplies, while a stronger US dollar added further pressure to crude markets.
Brent crude slipped towards US$87 a barrel, extending its decline as Iran and Oman reached an agreement over their respective shares of the strategic waterway’s waters and related revenues.
Tehran, however, cautioned that reopening the crucial shipping route would require more than an agreement with Oman, leaving uncertainty over the full restoration of traffic through the waterway.
US President Donald Trump said 10 million barrels of oil had passed through the Strait of Hormuz on Tuesday, while reiterating his claim that mines in the waterway had been cleared.
Oil prices have also weakened this week after new US sanctions against Iran turned out to be less aggressive than markets had anticipated, with the White House so far sparing Iran’s trading partners from tougher measures.
Still, geopolitical risks remain a key source of uncertainty for energy markets, with Russian President Vladimir Putin reportedly preparing an escalation in Ukraine that could pose further risks to global energy supplies.
The broader financial markets were also focused on monetary policy, with the dollar holding near an eight-day high after US inflation and other economic data slightly shifted expectations for Federal Reserve interest-rate policy.
The data came ahead of the Jackson Hole central bankers’ symposium, where investors are looking for signals on the Fed’s next move.
US Commerce Department figures showed the Personal Consumption Expenditures Price Index rose 3.7 per cent in the 12 months to July, unchanged from June and slightly above the 3.6 per cent forecast in a Reuters poll.
On a monthly basis, PCE rose 0.2 per cent, compared with expectations for a 0.1 per cent increase, after falling 0.1 per cent in June.
The inflation reading kept expectations of a Fed rate cut by year-end alive, although attention was turning to Fed Chair Kevin Warsh’s upcoming speech at Jackson Hole.
“The speech and press conference will be the ultimate test,” Reuters cited Westpac economist Ryan Wells saying in a note.
The dollar index, which measures the greenback against a basket of major currencies including the yen and euro, rose 0.21 per cent to 99.13, its highest level since August 19.
Against the yen, the dollar traded at 159.23, having given back most of its earlier intervention-related gains but remaining below a multi-decade high of around 164.
Investors were also awaiting remarks from Bank of Japan Deputy Governor Ryozo Himino for indications of whether the central bank could raise interest rates in September.
Mitsubishi UFJ Bank senior analyst Akihiko Yokoo said Himino’s wording could provide an important signal on the timing of the BOJ’s next move.
“In a speech shortly before the rate hike at the January 2025 meeting, Himino said policymakers would 'discuss and decide whether to raise interest rates,'” Yokoo said in a note.
“If similar wording is used this time, it would likely be taken as signalling a strong possibility of a rate hike at the September meeting.”
Money markets were pricing in an 87 per cent probability of a BOJ rate increase next month, according to money market broker Totan Tanshi.
Elsewhere, the Canadian dollar was little changed at C$1.388 per US dollar after Trump renewed his criticism of Canada following the breakdown of trade talks between the two countries.
Trump said on Wednesday it was “time to teach Canada you can't do this anymore”.
The euro traded at US$1.1655, while the British pound was steady at US$1.3592.
The Australian dollar gained 0.18 per cent to US$0.7181, while the New Zealand dollar rose 0.1 per cent to US$0.5948.
In cryptocurrency markets, bitcoin gained 0.55 per cent to US$78,874.60, while ether rose 1.07 per cent to US$2,498.35. - August 27, 2026
