Oil Prices Plummet as Diplomatic Progress Between US and Iran Fuels Hopes for Conflict Resolution

Oil prices fell sharply on Tuesday, extending their decline to $84.96 for Brent and $81.72 for WTI, both hitting their lowest levels since July 20.

The drop comes as diplomatic progress between the United States and Iran raises hopes of a resolution to the conflict, which has disrupted global energy flows and driven up prices.

U.S. President Donald Trump said Washington was holding 'constructive discussions' with Iran, but warned that American military strikes could resume if diplomacy failed.

IG analyst Tony Sycamore noted that the prospect of an exit from the conflict has reduced pressure on oil prices and eased immediate concerns surrounding Houthi attacks against Saudi infrastructure.