Iran's Hormuz Deadline Sends Oil Prices Plummeting

The oil market saw a significant shift on Tuesday morning after an unnamed Iranian official told Kyodo News that Iran would reopen the Strait of Hormuz within seven days if the United States eases military pressure.

This report led to a sudden change in sentiment, causing crude futures to reverse early gains and break through the first support level. The market had been optimistic about fresh sanctions against Iranian airlines starting Wednesday, but this diplomatic opening erased the bid before the European session was halfway done.