Oil Prices Plummet on Hopes for Iran Deal

Oil prices have fallen to a three-week low after senior US officials expressed hope for a deal with Iran to reopen the Strait of Hormuz, a critical shipping route. Treasury Secretary Scott Bessent said talks had progressed and a deal could be agreed upon as soon as Tuesday or Wednesday.

Brent crude fell by almost 5% to under $80 per barrel, while US West Texas Intermediate prices dropped over 5% to $76 a barrel, both reaching their lowest levels since July 13. The disruption had pushed gasoline prices in the US above $4 a gallon and diesel to almost $5.40 a gallon.

The potential deal would allow for freedom of movement through the Strait, but Iran has said it is not negotiating with the US and instead talking to Oman. Qatar continues efforts with other mediators to achieve a diplomatic resolution. Meanwhile, another blockade on Saudi Arabia's ports in the Red Sea remains in place due to attacks from Yemen's Iran-backed Houthis.