Brent Crude Slumps 16% on Renewed Iran Peace Deal Optimism

Oil prices have plummeted for a second consecutive day due to renewed optimism over a potential US-Iran peace deal.

The Brent crude price has fallen by nearly 16% in two days, trading around $83 per barrel, while West Texas Intermediate (WTI) crude dropped below $80 on Tuesday, down about 12% in the same period.

Morningstar chief market strategist Dave Sekera noted that oil prices have been volatile in recent weeks, with military action and retaliation followed by de-escalation announcements on Sundays.

The uncertainty surrounding a rate decision from the Federal Reserve later this month has added to the market's nervousness, as investors await guidance on potential inflationary pressures.