Oil Prices Plummet on Hopes for US-Iran Deal

Oil prices dropped by around 4% on Tuesday to a three-week low after comments from Qatar and U.S. Treasury Secretary Scott Bessent raised hopes for a diplomatic resolution to the Middle East conflict.

The conflict has been affecting oil flows through the Strait of Hormuz, which handles about one-fifth of global daily oil and liquefied natural gas supplies.

Front-month Brent futures fell US$3.11, or 3.71%, to US$80.66 a barrel by 7:59 a.m. ET after hitting a session high of US$86.33.

U.S. West Texas Intermediate (WTI) crude was down US$3.58, or 4.46%, at US$76.76 a barrel after touching a session high of US$82.33.

Giovanni Staunovo, a UBS analyst, said oil prices are pairing earlier gains on comments from Qatari officials saying a potential U.S.-Iran resolution has been drafted.