WTI Oil Plunges Amid Hopes of Iran Deal
WTI US Oil prices plummeted on Tuesday, reaching their lowest level in a week as hopes of a deal to reopen the Strait of Hormuz between the United States and Iran increased. The commodity fell by 3.91% to trade around $75.70 per barrel at the time of writing.
The improving geopolitical outlook has eased concerns over potential disruptions to global oil supplies, leading to a sharp decline in crude prices. US Treasury Secretary Scott Bessent stated that talks with Iran are ongoing and that a deal could be reached as soon as Tuesday or Wednesday to reopen the Strait of Hormuz and move towards a normalization of the conflict.
He added that if an agreement is reached, he expects energy prices to 'settle back down.' Qatar's Foreign Ministry spokesperson, Majed Al Ansari, also confirmed that diplomatic efforts between the United States and Iran are continuing in an attempt to reach a negotiated solution.
The technical analysis suggests that WTI US Oil remains under pressure, with its price well below the 100-period simple moving average at $81.03 and the 200-period SMA at $82.91. The Relative Strength Index (RSI) is around 35, edging towards oversold territory.