LONDON: Global oil prices fell to their lowest levels in nearly three weeks on Tuesday following reports of progress in US-Iran negotiations aimed at reopening the Strait of Hormuz to commercial shipping.
International benchmark Brent crude dropped nearly 5% to below $80 a barrel, while US benchmark West Texas Intermediate (WTI) fell more than 5% to around $76 a barrel, marking their lowest levels since July 13 as traders reacted to expectations of easing supply disruptions.
The decline followed comments by US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, who said negotiations involving Iran and Oman had made positive progress and raised hopes that maritime traffic through the Strait of Hormuz could soon resume.
Speaking to reporters in Washington, Rubio said talks had advanced but stressed that no final agreement had yet been reached.
Bessent separately said he expected a deal between the United States and Iran to reopen the strategic waterway could be finalized as early as Tuesday or Wednesday.
Despite the optimistic statements from US officials, details of any potential agreement have not been disclosed, and Iran has not issued an official response.
Previous efforts to resolve tensions between Washington and Tehran have repeatedly stalled, contributing to volatility in global energy markets.
More read, US singles breakthrough in Iran talks over Strait of Hormuz
The Strait of Hormuz is one of the world’s most critical energy chokepoints. Before regional tensions escalated earlier this year, about 20% of global crude oil and liquefied natural gas supplies passed through the narrow waterway each day, making any disruption a major concern for international energy markets.
