Oil Prices Plummet as Diplomatic Resolution Hopes Rise
Oil prices plummeted more than 5 percent on Tuesday to a three-week low after comments from Qatari and US officials raised hopes for a diplomatic resolution to the Iran conflict. This could potentially improve oil flows through the Strait of Hormuz, a critical waterway.
Brent crude futures fell USD 4.44, or 5.3 percent, to USD 79.33 a barrel by 1:17 p.m. ET (1717 GMT), while US West Texas Intermediate futures dropped USD 4.52, or 5.6 percent, to USD 75.82 a barrel.
These prices marked the lowest levels since July 13. US Secretary of State Marco Rubio stated that progress was made in talks with Iran and Oman about moving more ships through the strait, but a final agreement had yet to be reached.
Treasury Secretary Scott Bessent said earlier on Tuesday that a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday. Qatar's Foreign Ministry spokesperson Majed al-Ansari noted that efforts were continuing to secure a diplomatic resolution to the war.