Oil Prices Plummet Amid Hopes for US-Iran Settlement

Oil prices plummeted nearly 5% on Tuesday to their lowest levels in two weeks. The decline came as cautious hopes emerged that a halt in fighting between the US and Iran could pave the way for talks to end the war. Brent crude fell 4.8% to settle at $84.09 per barrel, while US West Texas Intermediate declined 4.1% to $79.26 per barrel.

Brent recorded its lowest settlement since July 13, and WTI since July 16. Both benchmarks lost about 16% over the past three days. Despite the pause in hostilities, Washington and Tehran remain far from resolving the disputes that led to the closure of the Strait of Hormuz, which carried about one-fifth of global oil supplies before the war.