Oil Prices Plummet as US-Iran Deal Looms, Gold Surges Past $4,080
International oil prices plummeted on Tuesday as optimism grew that the U.S. and Iran may reach a temporary agreement to reopen the Strait of Hormuz, a critical chokepoint for nearly 30% of global oil supply.
The potential deal sent West Texas Intermediate (WTI) crude tumbling 5.7% to $75.77 per barrel and Brent crude falling 5.3% to $79.36 per barrel, both benchmarks dropping below key psychological levels.
As oil prices declined, market concerns over intensifying inflation eased, significantly reducing the likelihood of a Federal Reserve rate hike in September to 57.1%, down from 67.2% the previous day.
The easing of inflation fears and market expectations fueled a rally in non-yielding gold assets, with spot gold prices breaching $4,080 per ounce during the session before settling 0.6% higher at $4,077.99.