Oil Prices Plummet as Diplomatic Hopes Ease Supply Concerns

Oil prices fell to their lowest levels in over a week on Tuesday, as hopes of a diplomatic breakthrough between the US and Iran eased concerns about supply disruptions.

Brent crude futures dropped $1.47 per barrel, or 1.66%, to $86.89 a barrel by 0326 GMT, while US West Texas Intermediate (WTI) crude declined $1.45, or 1.76%, to $81.16.

The decline came after US President Donald Trump said Washington was holding 'good talks' with Iran and that there was a chance of resolving the conflict.

However, he warned that US military strikes would resume if negotiations failed, while Iran also cautioned that it would retaliate if hostilities resumed.