Oil prices slip after 4% surge the previous day

Global oil prices retreated on August 7, 2026, following a nearly 4% jump the day before. Brent crude, the international benchmark, fell 0.3% to $82.26 per barrel in early trading, while U.S. benchmark crude slipped 0.1% to $77.19 per barrel. The dip comes as progress toward reopening the Strait of Hormuz—a critical chokepoint for oil and gas shipments—remains uncertain. Iran has indicated it is nearing a deal with Oman to reopen the strait, but disputes over control and fees persist. The U.S. has ruled out Iran charging fees to passing ships, while Iran insists on retaining some measure of authority, complicating negotiations. The strait, through which a fifth of the world’s traded oil and natural gas once passed, has seen reduced traffic, with only eight confirmed crossings on August 7, a 33% drop from the previous day. Most vessels are currently using the Iranian Unilateral Scheme. Meanwhile, Bab el-Mandeb activity increased by 18% to 26 crossings. Global stock markets showed mixed performance on August 7, with European indexes rising modestly: Germany’s DAX gained 0.7% to 26,329.28, France’s CAC 40 rose 0.3% to 8,728.22, and the UK’s FTSE 100 climbed 0.5% to 10,925.78. In Asia, Japan’s Nikkei 225 fell 0.1% to 65,606.71, South Korea’s Kospi dropped 0.6% to 6,258.77, and Taiwan’s Taiex declined 0.4%. China’s Shanghai Composite bucked the trend, rising 1% to 3,940.04 after July exports grew 24% year-over-year, driven by strong demand for electronics and high-tech products. Hong Kong’s Hang Seng gained 0.5% to 25,668.03, while Australia’s S&P/ASX 200 slipped less than 0.1% to 9,263.60. On Wall Street, the S&P 500 fell 0.2% and the Dow Jones Industrial Average dropped 0.9% on August 6 as oil prices surged and earnings reports rolled in. The Nasdaq composite declined 0.1%. Despite lingering concerns over geopolitical tensions and potential AI investment bubbles, strong corporate earnings have eased some market anxieties, with overall S&P 500 earnings growth shaping up to be the strongest since 2021. SpaceX’s stock rose 6.1% after more than 911 million shares held by early investors and employees became eligible for sale following the expiration of a lockup period. The stock, which debuted at $135 per share in June, has since traded around $115. The dollar weakened slightly against the yen and the euro, while the latest U.S. jobs report for July, released on August 7, is expected to show continued strength in employment despite easing hiring growth.