Oil Prices Plummet on Hopes for Mideast Conflict Resolution

Oil prices plummeted on Tuesday to a three-week low after comments from Qatari and US officials raised hopes for a diplomatic resolution to the Iran war, potentially easing oil flows through the Strait of Hormuz.

Brent crude futures dropped $4.44 (5.3%) to $79.33 a barrel, while US West Texas Intermediate futures fell $4.52 (5.6%) to $75.82 a barrel, their lowest prices since July 13.

US Secretary of State Marco Rubio said progress was made in talks with Iran and Oman about moving more ships through the strait, but a final agreement had not been reached.

Treasury Secretary Scott Bessent earlier stated that a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday.