Oil Prices Tank on Fading Hopes of U.S.-Iran Deal

Oil prices plummeted on Tuesday as traders priced in a U.S.-Iran agreement before any actual deal was signed. West Texas Intermediate fell to $75.64 per barrel, down $4.70 or 5.85%, while Brent dropped $4.61 to $79.16, hitting three-week lows.

Hopes for an agreement rose after Treasury Secretary Scott Bessent said a deal could come on Tuesday or Wednesday, and Secretary of State Marco Rubio mentioned progress in talks involving Iran and Oman. Qatar also reported ongoing diplomatic efforts, while President Donald Trump declared an agreement to reopen the Strait of Hormuz and denuclearize Iran 'imminent.'

However, Iran denied holding direct talks with Washington, stating it was negotiating through mediators in Oman. Tehran is seeking control over inbound shipping and visibility over outbound traffic, allowing it to intervene when necessary.