Oil Prices Plummet as US-Iran Conflict Hopes Rise
Oil prices dropped to their lowest levels in over a week on Tuesday as hopes for a resolution to the US-Iran conflict grew. Brent crude futures fell $1.75, or 1.98%, to $86.61, while U.S. West Texas Intermediate crude declined $1.26, or 1.53%, to $81.35.
US President Donald Trump said on Monday that Washington was having 'good talks' with Iran and there was a chance of a resolution. However, he noted that US strikes would resume if negotiations failed while Iran issued similar comments about retaliation.
The market hopes the situation improves based on new talks between Oman and Iran on a new mechanism for the Strait of Hormuz, said UBS analyst Giovanni Staunovo. Oman has proposed a joint regional mechanism to manage the strait with voluntary fees, a Gulf source told Reuters.