Brent Crude Oil Prices Tumble as Diplomatic Progress Eases Strait of Hormuz Fears
Brent crude oil prices fell to around $86 per barrel on Tuesday, marking its lowest level in over a week. This decline is attributed to renewed diplomatic efforts aimed at restoring security in the Strait of Hormuz.
The waterway has been plagued by disruptions due to the US-Iran conflict. However, Iran's Foreign Minister Abbas Araghchi held separate talks with his Saudi and Omani counterparts, proposing a joint regional mechanism to manage the strait. Under this plan, Iran would collect voluntary transit fees, which has reportedly gained support from Gulf states.
US President Donald Trump also weighed in on the situation, stating that Washington is holding 'good talks' with Tehran. However, he warned that military strikes could resume if diplomacy fails. Meanwhile, Iran threatened retaliation against any further aggression.
The diplomatic progress comes as Saudi Arabia intercepted drones targeting oil facilities and Yemen's Houthi rebels claimed an attack on the kingdom's East-West pipeline.