Oil Prices Plummet on Hopes for US-Iran Deal
Oil prices plummeted by around 4% on Tuesday to a three-week low after comments from Qatar and US Treasury Secretary Scott Bessent raised hopes for a diplomatic resolution to the US-Iran conflict.
Front-month Brent futures fell $3.11, or 3.71%, to $80.66 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $3.58, or 4.46%, to $76.76 a barrel.
Giovanni Staunovo, a UBS analyst, said oil prices were pairing earlier gains on comments from Qatari officials saying a potential US-Iran resolution has been drafted.
Qatar Foreign Ministry spokesperson Majed Al Ansari stated that efforts to secure a diplomatic resolution to the conflict were continuing, with mediators including Qatar, Pakistan, and Oman coordinating closely to facilitate negotiations and exchange draft proposals between the two sides.
US Treasury Secretary Bessent said that a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday.