Global oil prices edged lower on Thursday as reports emerged of potential U.S. access to Venezuelan crude reserves, while geopolitical tensions in the Strait of Hormuz kept markets cautious.
Brent crude futures for November delivery slipped 0.3% to $88.24 a barrel by 16:53 ET, extending a weekly decline of 4.8%. U.S. West Texas Intermediate crude for October delivery fell 0.1% to $83.44 a barrel, down 4.2% over the same period. The declines followed reports that the Trump administration is nearing agreements to secure long-term access to Venezuelan oil assets, allowing U.S. firms to develop heavy-oil fields.
Chevron and Halliburton are among the companies in advanced talks to invest in Venezuelan projects. Chevron is close to adding two new heavy-oil fields to its portfolio, while Halliburton is negotiating equipment deployments with local producers. Bloomberg News reported Venezuela may consider leaving OPEC as it strengthens ties with Washington, which would follow the UAE as the second major exit in recent years.
Geopolitical risks in the Strait of Hormuz continued to weigh on sentiment. Six months have passed since a joint U.S.-Israel missile strike on Iran, which initially prompted a four-to-six-week conflict timeline from President Trump. The confrontation has since stalled over control of the chokepoint, a critical route for roughly 20% of global oil and gas shipments. Both Washington and Tehran have enforced restrictions, with vessel traffic through the strait remaining at historically low levels.
Treasury Secretary Scott Bessent’s "Operation Economic Outcast" introduced new sanctions on Iran, warning other nations to halt economic dealings with Tehran. Iran’s foreign ministry condemned the measures as "U.S. economic terrorism" and reiterated its stance that sanctions violate international law. Diplomatic signals have been mixed: Russian state media cited a potential ceasefire framework, while Oman and Pakistan indicated progress in temporary shipping route negotiations. However, the Wall Street Journal reported U.S. mediators have ruled out returning to the terms of a mid-June memorandum of understanding that collapsed in July.
The article was published on Aug. 27, 2026, at 21:20 GMT and updated the following day at 16:57 GMT.
