Crude Prices Plummet Amid Diplomatic Hopes in Middle East

Crude oil prices fell to a three-week low on Tuesday, closing down 1.24% at $87.19 per barrel in October WTI crude oil (CLV26). The decline was attributed to diplomatic hopes in the Middle East, with Iran proposing to reopen the Strait of Hormuz within seven days if the US lifts its blockade.

The proposal comes after President Trump said that US officials had a 'very productive' meeting with Iranian representatives on Tuesday, and that 'they have another one scheduled in the very near future.'

Additionally, data from the European Union's Sentinel 2 satellite showed oil supertankers with the capacity to collect 14 million barrels of oil were observed at Saudi Arabia's export installations inside the Persian Gulf, signaling a shift in crude exports back toward the Strait of Hormuz.