Oil Prices Plunge as Iran and Saudi Arabia Boost Crude Supplies

Oil prices plummeted to a two-week low on Tuesday as market concerns eased over increased crude supplies from the Gulf region. Iranian officials signaled that they could reopen the Strait of Hormuz within seven days, provided the US eases military pressure and lifts its blockade of Iranian ports.

The strait is crucial for global oil and liquefied natural gas supplies, carrying around one-fifth of global exports before the US-Israeli attacks on Iran began in late February. Saudi Arabia has also restarted its East-West pipeline and could resume exports from the Red Sea port of Yanbu later on Tuesday.

The Iranian delegation attending the United Nations General Assembly meetings in New York has full authority to revive diplomacy with the US, according to officials. The prospect of increased supplies from the Gulf region weighed heavily on oil prices, which fell by $2-$3 per barrel across various futures contracts.