September NYMEX West Texas Intermediate crude dropped $3.15 to $79.40 per barrel, while ICE Brent crude fell $3.90 to reach $84.50. Refined products saw more modest losses, with RBOB gasoline and ULSD futures sliding in sympathy with the broader complex. The shift in sentiment follows reports of diplomatic overtures between Iran and Oman, which Goldman Sachs analysts suggest could reopen the Strait of Hormuz and revive stalled U.S.-Iran negotiations.

Despite the downward pressure, regional volatility remains a factor. Goldman Sachs warned that ongoing Houthi rebel attacks on Saudi oil infrastructure, including the Yanbu oil port and the Jazan refinery, offer a persistent upside risk. While the bank projects Brent crude could moderate to $80 by year-end, these localized disruptions continue to threaten market stability. Meanwhile, domestic spot markets diverged from the NYMEX trend; Chicago physical gasoline prices climbed 2-3 cents per gallon following reported operational upsets at the Phillips 66 Wood River refinery and the Citgo Lemont facility in Illinois.