Oil Prices Plummet Amid Hopes for Hormuz Deal

Oil prices took a hit on Tuesday after U.S. Treasury Secretary Scott Bessent suggested that a deal to reopen the Strait of Hormuz could be reached 'today or tomorrow'.

Brent crude oil, the global benchmark, plummeted more than 5% to $79.50 per barrel, dipping below the $80 mark for the first time since July 13.

The decline in Brent was partially offset by a 4% drop in prices to $80.50 per barrel, while WTI crude oil, the U.S. benchmark, fell more than 5.5% to $75.77 per barrel, reaching its lowest level in three weeks with a 4.3% decrease to $76.90 per barrel.

Traders reacted cautiously to Bessent's comments, and it remains to be seen how tensions between Washington and Tehran will unfold. Qatar's Ministry of Foreign Affairs stated that efforts to resolve the conflict are at a 'very advanced stage', but shipping industry analysts were less optimistic than Bessent.