Commodities
Oil Prices Plummet on Diplomatic Signals from US, Iran, and Oman
Oil prices plummeted on Tuesday, settling around 5% lower after diplomatic signals raised hopes that the conflict in the Strait of Hormuz could soon be resolved.
The drop, which saw Brent crude futures fall by roughly $4.40 to settle near $79 a barrel and WTI crude fall nearly 6% to settle at around $76 a barrel, underscores the market's sensitivity to geopolitical risk.
US Secretary of State Marco Rubio said talks with Iran and Oman were progressing on moving more ships through the strait, but cautioned that a final agreement had not yet been reached.
Goldman Sachs expects Brent to trade between $80 and $90 a barrel until there is either confirmation of a US-Iran agreement or a significant escalation in attacks.