Brent Crude Plunges Below $100 on Hormuz Reopening Hopes

Brent crude oil prices have fallen below $100 to $98.55 per barrel on hopes that the Strait of Hormuz will be reopened after Iran signaled it could do so within a week if the US lifts its port blockade and eases military pressure.

The move is driven by supply, not demand, as Saudi exports are returning and Iranian President Masoud Pezeshkian has offered to reopen the strait in exchange for US concessions at the UN General Assembly.

This comes after a brief dip under $100 on Monday, but unlike then, the price is trading well below the line. The market is pricing an expected reopening, not an actual one.