Oil Prices Plummet on Hopes of US-Iran Deal
Oil prices plummeted by as much as 5% on Tuesday, reaching their lowest levels since July 13, as hopes for a US-Iran deal rose after comments from Qatar and US Treasury Secretary Scott Bessent.
Front-month Brent futures fell $3.95 to $79.82 a barrel, while US West Texas Intermediate (WTI) crude dropped by $4.32 to $76.02 a barrel.
The decline came after Qatari officials said a potential US-Iran resolution had been drafted, and Bessent mentioned that a deal with Iran to reopen the Strait of Hormuz could be reached as soon as today or tomorrow.
However, despite the optimism, shipping traffic through the Strait of Hormuz remained largely unchanged, and Goldman Sachs expects Brent prices to remain in an $80-$90 a barrel range until there is confirmation of a new US-Iran agreement.