Oil Prices Plummet on Hopes for US-Iran Deal

Oil prices plummeted nearly 5% on Tuesday to reach their lowest levels in three weeks after comments from Qatar and US Treasury Secretary Scott Bessent raised hopes for a diplomatic resolution to the Middle East conflict.

Brent crude fell to $79.82 a barrel, while US West Texas Intermediate (WTI) crude dropped to $76.02 a barrel, both their lowest levels since July 13.

The decline came after Qatari officials said a potential US-Iran resolution had been drafted, and Bessent stated that a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday.

While production in the Middle East has recovered from its lows, it remains below pre-conflict levels, keeping the oil market undersupplied, according to Giovanni Staunovo, a UBS analyst.