Iran's Strait of Hormuz Reopening Offer Sends Oil Prices Down

Oil prices fell on Tuesday after reports that Iran could reopen the Strait of Hormuz within seven days if the US takes initial steps to reduce military pressure.

The news eased some fears about a major disruption to oil shipments through the key waterway, with Brent crude futures falling 89 cents or 0.89% to $99.45 a barrel at 0932 GMT.

Hamad Hussain, senior climate and commodities economist at Capital Economics, said the development could be a positive sign that diplomatic efforts may be making progress.

The Strait of Hormuz is extremely important for global energy markets, carrying about one-fifth of global oil and liquefied natural gas supplies.