US-Iran Diplomatic Progress Drives Second Consecutive Oil Price Drop

Global oil prices declined for the second consecutive session due to renewed optimism over a possible diplomatic breakthrough between the United States and Iran. This reduced fears of prolonged supply disruptions in the Middle East, particularly concerning the Strait of Hormuz.

Brent crude, the global benchmark, fell by 6% to settle at $78.72 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 5.8% to $75.65 per barrel.

The improved investor sentiment was attributed to comments from U.S. Treasury Secretary Scott Bessent, who indicated that Washington and Tehran could soon reach an agreement regarding the reopening of the Strait of Hormuz. This raised expectations that crude supplies from the region could normalize sooner than anticipated.