Wednesday 05 August 2026 6:25 am | Updated: Wednesday 05 August 2026 4:08 pm

As it happened: Stocks rise as oil fluctuates after Red Sea attack; US-Iran deal ‘being circulated’

Senior City Reporter

Donald Trump delivering a speech at a podium during a formal event, emphasizing key points to an attentive audience. — Trump said Iran would be 'hit hard' if the strait does not open. (Pic: AP)

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Oil prices have snapped a losing streak following Yemen’s Houthis said they had attacked a Saudi vessel in the Red Sea.

Brent crude drew back above the $80 per barrel mark on Wednesday morning on the news, but prices were still down for the week by around 10 per cent.

There is growing optimism around a deal between the US and Iran after Qatar’s foreign ministry, which has helped mediate negotiations between Washington and Iran, said the two nations were in “very progressive stages” to resolve the conflict.

It added drafts of a potential agreement were “being circulated” but there was no direct communication between Trump and Iran.

The Trump administration has signalled some optimism with Secretary of State Marco Rubio declaring there has been progress “but not finality.” Treasury Secretary Scott Bessent said a consensus could be reached in the next few days.

But caution and risk still surrounds the all-important Strait of Hormuz, which is helping keep oil prices elevated.

A cargo vessel was struck by an unknown projectile in the strait and suffered a complete blackout on Tuesday, according to a report from the Marisks maritime risk management group.

President Trump has renewed threats to Iran over access to the narrow waterway.

“The Strait’s going to be open very soon or they are going to get hit very hard,” he said, adding “if they back out again, they are going to get hit really hard. They know that. They understand that. I have no choice.”

We’ll be bringing you all the latest market updates and analysis.