Brent crude fell to around $86.80 a barrel for several hours on Thursday, August 27, 2026, extending its decline of recent days as vessel traffic through the Strait of Hormuz showed a relative increase and regional diplomatic efforts to ease tensions with Iran intensified. However, prices later rebounded above $88 after the White House issued a new statement on negotiations with Tehran.

Before the rebound, Brent had lost around 9% of its value over five days. In recent days, the oil market has reacted primarily to signs of a possible improvement in shipping through the Strait of Hormuz and progress in mediation efforts by regional countries.

Data from Kpler showed that 10 cargo vessels passed through the Strait of Hormuz on Wednesday, up from eight the previous day but still below the 10-day moving average of around 15. While there are signs of improvement, maritime traffic remains significantly below normal pre-war levels.

Meanwhile, diplomatic efforts to establish new arrangements in the Strait of Hormuz are continuing. Qatar’s Prime Minister and Foreign Minister Mohammed bin Abdulrahman Al Thani travelled to Tehran on Thursday and met Iranian Foreign Minister Abbas Araghchi. Qatar’s Ministry of Foreign Affairs said the two sides discussed a phased framework that would include establishing a “joint temporary shipping corridor” in the Strait of Hormuz and implementing a joint project to clear mines from the waterway.

Qatar had previously said it supported all diplomatic efforts to reach a solution that would guarantee freedom of navigation and pave the way for a comprehensive agreement and lasting peace in the region.

The diplomatic activity follows a visit to Tehran by Oman’s Foreign Minister Badr Albusaidi and talks between Iran and Oman on establishing a temporary corridor to restore safe shipping. Pakistan’s army chief, General Asim Munir, also travelled to Tehran in recent days at the head of a delegation. Reuters reported that the Pakistani delegation’s talks with Iranian officials focused on de-escalation, reopening the Strait of Hormuz and finding a political solution to the crisis.

However, the market remains highly sensitive to political developments. Brent, which had fallen to around $86.80 during Thursday’s trading, rose again after the White House said no negotiations were currently taking place between the United States and Iran. Following the statement, Brent climbed to around $88.92 a barrel.

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Will UAE petrol prices fall in September?

The recent decline in oil prices came just days before the UAE announces petrol and diesel prices for September and could affect the country’s fuel price outlook. The UAE Fuel Price Committee is expected to announce the new rates at the end of August.

In August, Super 98 petrol was priced at Dh3.60 per litre, Special 95 at Dh3.49, E-Plus 91 at Dh3.41 and diesel at Dh3.80. All three petrol grades rose by 20 fils per litre compared with July.

Despite the significant drop in oil prices in recent days, a reduction in September petrol prices is not yet certain. Market calculations show that Brent crude’s average closing price for most of August was about $87.70, compared with around $83.46 in July. That difference alone could continue to exert some upward pressure on September fuel prices.

However, the sharp decline in oil prices during the final days of the month has changed the outlook from early August and reduced the likelihood of a substantial fuel price increase. Citing recent developments, Gulf News said unchanged prices or a modest reduction in September would be plausible.

Petrol prices in the UAE do not directly track daily movements in Brent crude. Since fuel prices were deregulated in 2015, monthly rates have been based on average international market benchmarks, particularly prices for refined petrol and diesel products in the preceding weeks, as well as transport, distribution and operating costs. A decline in oil prices over several days will therefore not necessarily lead to a corresponding fall in petrol prices.

Under current conditions, stable prices or a limited adjustment in September petrol rates appear more likely than a sharp increase or decrease. A continued decline in oil prices and a sustained improvement in traffic through the Strait of Hormuz during the remaining days of the month could increase the likelihood of a price cut. However, the higher average oil price for most of August compared with July means a slight increase also remains possible.

The UAE’s official petrol and diesel prices for September 2026 are due to be announced in the final days of August.