Oil Prices Plummet on Diplomatic Hopes for Iran Conflict Resolution
Oil prices plummeted over 5% on Tuesday to their lowest level in three weeks after US and Qatari officials expressed hope for a diplomatic resolution to the Iran conflict. Brent crude futures dropped $4.44, or 5.3%, to $79.33 a barrel by 1:17 p.m. ET (1717 GMT), while US West Texas Intermediate futures fell $4.52, or 5.6%, to $75.82 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 of Hormuz, but a final agreement had yet to be reached. Treasury Secretary Scott Bessent 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 said efforts to secure a diplomatic resolution to the war were continuing. The prospect of a diplomatic solution has removed some geopolitical risk premium from oil prices, according to Simon-Peter Massabni, head of business development at brokerage XS.com.