Iran's Reopening Pledge Sends Oil Prices Plummeting

Oil prices fell to a two-week low on Tuesday as prospects for increased oil supplies from the Gulf eased market concerns. According to Reuters, Iran signaled it could reopen the Strait of Hormuz within seven days and Saudi Arabia is set to resume exports from its Red Sea port of Yanbu.

The Brent crude futures November contract dropped $2.01, or 2%, to $98.33 a barrel at 1027 GMT. The WTI October contract lost $2.50, or 2.61%, to $93.28 a barrel.

Iran can reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports, said a senior Iranian official. Oil prices appear to be falling on the back of media reports that Iran may be willing to reopen the Strait of Hormuz within seven days.

Average diesel prices have rallied in Europe and the US to record highs due to wars in Iran and Ukraine sharply cutting exports from major producers such as Russia, Saudi Arabia, and the UAE.