Crude Prices Plunge Amid Diplomatic Gains and Increased Flows Through Strait of Hormuz

Crude oil prices plummeted by 4.77% on Tuesday as diplomatic efforts to end hostilities in the Middle East and increased flows through the Strait of Hormuz eased supply concerns.

The losses accelerated after data from the European Union's Sentinel 2 satellite showed oil supertankers with a capacity to collect 14 million barrels of oil were observed at Saudi Arabia's export installations inside the Persian Gulf, signaling the country has shifted its crude exports back toward the Strait of Hormuz.

The development comes as President Trump expressed willingness to meet Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly in New York this week. Meanwhile, Admiral Brad Cooper, head of US Central Command, reported that crude and liquefied natural gas flows through the Strait of Hormuz over the past two weeks are running at a six-month high.