Oil Prices Plunge as Hopes Rise for US-Iran Deal

Oil prices have dropped by nearly 4% to a three-week low after comments from Qatar and U.S. Treasury Secretary Scott Bessent raised hopes for a diplomatic resolution to the Middle East conflict.

The drop in oil prices was significant, with Brent futures falling $3.11, or 3.71%, to $80.66 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $3.58, or 4.46%, at $76.76 a barrel.

The conflict in the Middle East has been a major concern for oil markets, with the Strait of Hormuz being a central sticking point in talks. The Strait handles about one-fifth of global daily oil and liquefied natural gas supplies.

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