Iran's Hormuz Proposal Sends Oil Prices Plummeting

Oil prices plummeted more than 2% on Tuesday to their lowest level in two weeks, following Iran's proposal to reopen the Strait of Hormuz within seven days. The development came as a senior Iranian official revealed that Tehran had conveyed its plan to Washington through mediators.

The prospect of increased flows through the key waterway eased concerns over global supplies, causing Brent crude to fall by about 2.1% to around $98 a barrel, while US crude dropped more than 2.5%. The decline also coincided with signals from Iran and the United States that they are open to reviving negotiations to end the conflict.

The UN General Assembly in New York provided a backdrop for potential renewed diplomacy between the two nations, as both countries' presidents attended the event. According to Reuters, Iran's delegation had authority to pursue renewed talks with the US.