Oil Prices Crash as Iran Proposes Reopening Strait of Hormuz

Oil prices plummeted by 3% on Tuesday as Iran proposed reopening the Strait of Hormuz within seven days if the United States eases its pressure. The international benchmark, Brent Crude, fell below $100 per barrel for the first time in a week, trading at $98 a barrel. WTI Crude also dropped to $91 per barrel.

The Iranian government official told Japan's Kyodo News that Iran would reopen the Strait of Hormuz if the U.S. takes steps towards ending its blockade and military operations in the area. The proposal includes resuming talks aimed at permanently ending hostilities between the two countries.

Iran has conveyed this proposal to the U.S. and will consult with intermediaries during the UN General Assembly gathering in New York this week. However, there won't be a direct meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian, as some reports had suggested.