WASHINGTON DC: Oil prices fell to their lowest level in three weeks on Tuesday after senior US officials signaled possible progress toward reopening the strategically important Strait of Hormuz.
US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent said discussions involving Iran and Oman had advanced and could allow oil shipments to resume as early as this week.
Following the remarks, Brent crude, the global benchmark, dropped nearly 5 percent to below $80 per barrel. US West Texas Intermediate crude also declined by more than 5 percent to around $76 a barrel. Both benchmarks reached their weakest levels since July 13.
Rubio told reporters that talks aimed at increasing the number of ships passing through the strait had made progress, although no final agreement had yet been reached. Bessent said a deal could potentially be concluded as early as Tuesday or Wednesday and described it as a step toward restoring freedom of navigation and reducing tensions in the conflict.
Despite the optimism, details of any possible agreement have not been made public. Previous efforts to ease tensions between Washington and Tehran have failed, contributing to continued volatility in global oil markets and concerns about higher fuel prices for consumers.
Iran, however, has maintained that it is not negotiating directly with the United States and is instead holding discussions with Oman.
(Inputs from BBC)
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