Commodities
Crude Prices Plunge Amid Hopes for Iran Deal
Markets breathed a collective sigh of relief on Wednesday as oil prices plummeted, leading to gains in most equities. The drop in crude prices was triggered by lingering hopes for an eventual deal to end the US-Iran war that will reopen the Strait of Hormuz, despite talks remaining at a standstill.
The Saudi East-West pipeline, a key alternative route for oil shipments from the kingdom while Hormuz was choked off, had its capacity restored to about half. The Trump administration also ordered the release of more oil from US emergency reserves.
West Texas Intermediate tumbled by over three percent and Brent shed more than two percent on Tuesday, falling below $90 a barrel. However, they both edged back up on Wednesday but pared earlier gains.