Oil Prices Plummet 5% Amid Hopes for US-Iran Conflict Resolution

Oil prices plummeted 5% to a two-week low on Tuesday as traders assessed developments in the Middle East, particularly the US-Iran conflict. Brent futures dropped $4.61, or 5.2%, to $83.75 a barrel at 12:01 p.m. EDT (1601 GMT), while U.S. West Texas Intermediate (WTI) crude fell $4.06, or 4.9%, to $78.55.

Oman presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, according to sources. The Iranian government has yet to respond to the proposals, aimed at ending disruptions to trade through the strait caused by the US-Israeli war on Iran.

Before the conflict began on February 28, about a fifth of global oil supplies flowed through the Strait of Hormuz. U.S. President Donald Trump reported 'good talks' underway with Iran but threatened to restart strikes unless negotiations deliver, while Tehran denied seeking to resume talks with the US.