Oil Prices Plummet Amid Diplomatic Hopes Between US and Iran
Crude oil prices tumbled by over 10% in two sessions due to renewed hopes of diplomatic breakthroughs between the United States and Iran. Brent crude futures fell $0.78, or 1%, to $88 a barrel, while US West Texas Intermediate crude declined $0.88, or 1.1%, to $82 a barrel.
These declines came after sharp sell-offs in the previous sessions, with Brent crude futures dropping by $8.42, or 8.7%, to settle at $88.36 a barrel, their lowest level since July 17. WTI futures fell $6.70, or 7.5%, to close at $82.61 a barrel, the lowest since July 16.
The market is reassessing the geopolitical risk premium built into prices during the conflict, as US President Donald Trump stated that Washington was engaged in talks with Iran and hinted at a possible resolution. However, he also warned that US strikes could resume if negotiations failed.