Oil prices drop as investors weigh potential Hormuz deal between Iran, Gulf states

LONDON, Aug. 7 (Reuters) - Oil prices edged lower on Friday as investors weighed signals that Gulf states and Iran were closing in on a deal to reopen the Strait of Hormuz under a temporary arrangement aimed at allowing for broader talks to bring the Iran war to a close.

Brent crude futures were down 57 cents, or 0.7%, at $81.92 a barrel at 1014 GMT. U.S. West Texas Intermediate futures fell 33 cents, or 0.4%, to $76.96.

Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban U.S. and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February.

Prices fell earlier in the week as a possible solution to the conflict looked more likely, and both benchmarks are on course for a weekly loss of about 9%.