Iran's Hormuz Proposal Sinks Crude Oil Futures by 3% on Supply Fears
Crude oil futures plummeted by 3% on Tuesday as Iran proposed reopening the Strait of Hormuz within seven days if the US lifts its blockade on Iranian ports.
This diplomatic signal eased global supply fears ahead of the UN General Assembly, where talks are expected between Tehran and Washington.
The proposal came after reports that Iran's Revolutionary Guard could negotiate an end to the conflict if national interest required it.
US President Donald Trump is scheduled to address the UNGA later in the day and may meet Iranian President Masoud Pezeshkian on the sidelines, sparking hopes for a possible de-escalation of tensions.
Crude oil prices hit two-week lows, with Brent futures falling 2.52% to $97.81 per barrel and WTI declining 3.18% to $89.43 per barrel in New York.