Hormuz Deal Hopes Send Oil Prices Plummeting

Oil prices plummeted on Tuesday to a three-week low after senior US officials expressed optimism that negotiations could lead to a deal allowing shipments through the Strait of Hormuz waterway.

US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced talks had made progress, with the potential for a deal as soon as this week. Brent crude prices fell by almost 5% to under $80 (£60), while US West Texas Intermediate prices dropped over 5% to $76 a barrel.

Rubio stated there was 'progress made' in discussions with Iran and Oman, but no finality yet. Bessent added that a deal could be reached as soon as Tuesday or Wednesday, allowing for more ships through the strait.