Iran Signals Possible Reopening of Strait of Hormuz, Sending Oil Prices Plummeting
Oil prices fell to a two-week low on Tuesday after reports suggested Iran could reopen the Strait of Hormuz within seven days. The Brent crude futures November contract dropped $2.01, or 2%, to $98.33 a barrel at 1027 GMT.
The Iranian government signaled it could reopen the strategic waterway if the United States eases military pressure and lifts its blockade on Iranian ports. A senior Iranian official told Reuters that the Iranian delegation to the United Nations General Assembly in New York has full authority to revive diplomacy with the US.
Saudi Arabia's restart of operations at its East-West Pipeline also weighed on prices, as it could resume exports from the Red Sea port of Yanbu later on Tuesday. This added to market concerns about increased oil supplies from the Gulf region.