Oil Prices Plummet Amid Hopes for Strait of Hormuz Deal
Oil prices plummeted to a three-week low on Tuesday after US officials expressed optimism about a deal with Iran to reopen the Strait of Hormuz waterway.
US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced that talks have made progress, potentially allowing shipments to resume as soon as this week. Brent crude prices fell by almost 5% to under $80 per barrel, while US West Texas Intermediate prices dropped over 5% to $76 per barrel.
The Strait of Hormuz is a critical shipping route that handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February. Rubio stated that 'there's been progress made in those talks, but not finality yet,' while Bessent said there was a 'chance we may have a deal today or tomorrow to open the strait.'