Crude Prices Plummet on Easing US-Iran Tensions

Crude oil prices plummeted on Wednesday after reports suggested that the US is easing tensions with Iran. The price of October WTI crude oil fell by $2.55, or 3%, to a one-week low. This decline follows Monday's sharp losses and adds to concerns about an escalation in the conflict between the two countries.

The New York Times reported that the US State Department is preparing to send diplomats back to embassies in the Middle East, which were evacuated before and during the war with Iran. This move suggests that the Trump administration does not anticipate a return to all-out hostilities with Iran.

Crude prices are also being weighed down by increasing flows through the Strait of Hormuz. On Monday, Axios reported that about 40 tankers transited out of the strait last Friday night, transporting around 16 million barrels of crude.