Oil Prices Plummet as Hopes of US-Iran Breakthrough Ease Tensions

Oil prices plummeted on Tuesday as hopes of a diplomatic breakthrough between the United States and Iran eased concerns over supply disruptions. The Brent crude futures dropped $1.47, or 1.66%, to $86.89 a barrel, while US West Texas Intermediate (WTI) crude declined $1.45, or 1.76%, to $81.16.

US President Donald Trump said Washington was holding 'good talks' with Iran and that there was a chance of resolving the conflict, but warned that US military strikes would resume if negotiations failed.

The prospect of de-escalation had eased fears over attacks on critical energy infrastructure and shipping routes, though risks remain elevated. Analysts noted that concerns over Middle East supply disruptions persist, citing Saudi Arabia's interception of drones targeting petroleum facilities.