Oil Prices Plunge Amid Easing Tensions in Strait of Hormuz

Oil prices plummeted around 6% on Tuesday as diplomatic efforts between the US and Iran intensified, easing concerns over potential supply disruptions.

The international benchmark Brent crude futures fell to around $79 per barrel, down about 5.7% from the previous close of $83.77.

This marks the first time Brent has dropped below $80 since July 13.

US Treasury Secretary Scott Bessent stated that Washington and Tehran were continuing negotiations, with a possible agreement to reopen the Strait of Hormuz as early as Tuesday or Wednesday.

Baghaei from the Iranian Foreign Ministry clarified that discussions through Omani mediation are focused on securing safe passage for commercial vessels, not direct negotiations with Washington.