Oil Prices Plummet as Hopes Rise for US-Iran Talks

Oil prices plummeted about 5% on Tuesday to a two-week low as investors cautiously hoped that the pause in fighting between the US and Iran would lead to talks to end the war.

The Brent futures price dropped $4.27, or 4.8%, to settle at $84.09 a barrel, while WTI crude fell $3.35, or 4.1%, to settle at $79.26.

This drop comes after a 16% decline in oil prices over three days, with Brent closing at its lowest since July 13 and WTI at its lowest since July 16.

Despite the pause in hostilities, tensions between the two sides remain high as they are far from resolving their differences that led to the effective closure of the Strait of Hormuz, which prior to the war was used to transit about a fifth of global oil supplies.