Oil Prices Plummet as Hopes for US-Iran Resolution Grow

Oil prices continued to decline on Tuesday, dropping by over $1 per barrel as hopes for a resolution in the US-Iran conflict eased global energy flows concerns.

Brent crude futures fell to their lowest since July 20 at $86.89, down $1.47 or 1.66 percent. US West Texas Intermediate crude also dipped to its lowest level since July 20 at $81.16 a barrel, down $1.45 or 1.76 percent.

The decline in oil prices came after the US suspended its campaign of air strikes against Iran over the weekend and President Donald Trump said there was a chance of a resolution.

However, Trump also warned that US strikes would resume if negotiations failed, while Iran issued similar comments about retaliation.

Analysts noted that the relief from the pause in hostilities had taken some pressure off oil prices, but warned that the situation remains highly fluid and supply disruptions remain a risk.