Oil Prices Plummet on Diplomatic Hopes for Iran Conflict Resolution
Oil prices plummeted to a three-week low on Tuesday after comments from Qatari and US officials hinted at diplomatic efforts to resolve the Iran war, potentially easing oil flows through the Strait of Hormuz.
Brent crude futures dropped $3.30, or 3.9%, to $80.47 a barrel by 11:19am ET (1519 GMT), while US West Texas Intermediate futures fell $3.67, or 4.6%, to $76.67 a barrel.
US Secretary of State Marco Rubio said there was progress in talks with Iran and Oman about moving more ships through the strait, but a final agreement was yet to be reached. Treasury Secretary Scott Bessent had earlier stated that a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday.
Qatar's Foreign Ministry spokesperson Majed al-Ansari reaffirmed efforts to secure a diplomatic resolution to the conflict.