Crude Prices Drop Below $80 Amid Hopes for US-Iran Deal
Crude oil prices have dropped below $80 per barrel as optimism grows that the US and Iran may soon strike a diplomatic agreement. The global benchmark, Brent crude, fell by 4.5% to $79.96 per barrel, slipping below the key $80 level. This decline followed comments from US Treasury Secretary Scott Bessent, who said Washington and Tehran could announce an agreement 'today or tomorrow' to reopen the Strait of Hormuz, a crucial maritime route that handles around one-fifth of the world's oil supply.
Qatari officials have also announced that a draft framework for a possible US-Iran agreement has been prepared. Diplomatic efforts remain underway, with mediators including Qatar, Pakistan, and Oman working closely to advance negotiations and exchange draft proposals between both sides.
Goldman Sachs estimates that Brent crude will remain in the $80-$90 per barrel range until there is greater clarity on the geopolitical situation. The investment bank notes that while prices have eased after the US delayed planned military action against Iran, the underlying physical oil market continues to tighten due to supply constraints.