Oil Prices Plummet on Hopes of US-Iran Diplomatic Resolution

Oil prices plummeted by nearly 4% on Tuesday to reach a three-week low as hopes for a US-Iran diplomatic resolution rose after comments from Qatar and U.S. Treasury Secretary Scott Bessent.

Qatari Foreign Ministry spokesperson Majed Al Ansari said efforts to secure a diplomatic resolution to the conflict were ongoing, with mediators including Qatar, Pakistan, and Oman coordinating closely to facilitate negotiations and exchange draft proposals between the two sides.

Brent futures fell $3.11, or 3.71%, to $80.66 a barrel by 1159 GMT after hitting a session high of $86.33, while U.S. West Texas Intermediate (WTI) crude was down $3.58, or ​4.46%, at $76.76 a barrel.

Goldman Sachs expects Brent to remain in an $80-$90 a barrel range until there is either confirmation of a new US-Iran agreement or a significant escalation in attacks and targets.