Hormuz Deal Hopes Send Oil Prices Tumbling

Oil prices declined as US and Iranian negotiators explored a phased deal to reopen the Strait of Hormuz, a key waterway for global oil supplies. Brent crude futures dropped 0.8% to $105.78 per barrel at 1:22 p.m. in Singapore.

The negotiations are ongoing on the sidelines of the United Nations General Assembly, with Iran submitting a new seven-day proposal to Washington. If certain conditions are met, Tehran has offered to reopen Hormuz, which would be a significant development given its importance for global oil trade.

Prices have been volatile in recent weeks due to mixed signals on the conflict between the US and Iran. While some analysts believe prices will remain around $100-$110 unless a credible deal is reached, others predict that another failure could push prices back up to $120 per barrel.