Petrol and diesel prices set to drop! Crude oil falls below $80

Crude Oil Price: Crude oil prices have fallen further today, dropping below $80 per barrel in the international market. This is the result of ongoing diplomatic talks between the US and Iran.

Crude Oil Crash: A sharp decline in crude oil prices has been recorded in the global market today, August 5, 2026. Oil prices have dropped significantly—by 5-6%—due to ongoing diplomatic negotiations between the US and Iran and efforts to reopen the Strait of Hormuz. This marks the lowest level for crude oil in the past three weeks.

Today, Brent crude has fallen to $79.06 per barrel, a decline of approximately 5.9%. Meanwhile, WTI crude has also dropped by about 6.2% to stand at $75.20 per barrel. On India's Multi Commodity Exchange, crude oil opened at around ₹7,860 per barrel today, showing a decline of ₹177 compared to the previous session. As previously mentioned, the primary reason for this price drop is the prospect of the Strait of Hormuz reopening.

Why did prices fall?

According to information provided by US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, talks with Iran and Oman regarding the safe passage of ships through the Strait of Hormuz are moving in the right direction.

Meanwhile, the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, is playing an active role as a mediator to help bridge differences between the US and Iran and reach a lasting agreement. It was he who proposed halting an attack on Iran and initiating dialogue to US President Donald Trump; following this, both nations have begun sharing draft agreements.

Oman is also playing a significant role in this process. According to Iran's Foreign Ministry, discussions are underway with Oman regarding an agreement on a temporary route for the safe passage of ships through the Strait of Hormuz.

What will be the impact on India?

India stands to gain significant economic benefits as crude oil prices approach $79 per barrel. This will substantially reduce India's foreign exchange expenditure; for every dollar drop in crude oil prices, India's import bill decreases by approximately ₹10,000 crore. Cheaper crude oil will lower transportation and logistics costs within the country. This will help keep the prices of fruits, vegetables, and other essential commodities in check, providing major relief to the general public.

Furthermore, if crude oil prices remain at this level for a few consecutive weeks, retail prices of petrol and diesel for consumers could also see a significant reduction.