- Oil prices fell to a three-week low on Tuesday as senior US officials raised hopes of a deal with Iran to reopen the Strait of Hormuz.
- US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced talks had progressed to allow shipments to potentially resume as soon as this week.
- Brent crude fell by almost 5% to under $80, while US West Texas Intermediate traded down more than 5% to $76 a barrel; both contracts hit their lowest levels since 13 July.
- Rubio said there had been progress in discussions on getting more ships through the Strait with Iran and Oman, but said there was not finality yet.
- No details of a potential deal have been released; the Strait of Hormuz has been a central point in US-Iran negotiations and handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February.
- The disruption has sent prices at pumps up across the world; in the UK petrol hit £1.60 a litre, while US gasoline averaged above $4 a gallon.
- Qatar, a key mediator, continued diplomatic efforts but admitted no direct talks were planned; President Donald Trump warned Iran faced its "last chance", while Iran said it was not negotiating with the US and was instead talking to Oman.
Oil prices have plummeted to a three-week low as US officials signal a potential deal with Iran to reopen the Strait of Hormuz. Brent crude fell nearly 5% to under $80, while West Texas Intermediate dropped to $76 a barrel.1345678910
US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced that talks have progressed, with a deal possibly being reached as soon as Tuesday or Wednesday. Rubio stated, “There’s been progress made in those talks, but not finality yet. We’re hoping that will happen very shortly,” indicating optimism for resuming shipments through the critical waterway.
Bessent added, “There was a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict,” emphasizing the importance of freedom of movement for commercial shipping. The Strait of Hormuz is crucial, handling about one-fifth of global oil and liquefied natural gas supplies before the conflict began.
The disruption has led to rising prices globally, with UK petrol prices averaging £1.60 per litre and US gasoline prices exceeding $4 per gallon. Despite the US's optimistic stance, Iran has stated it is not negotiating directly with the US, focusing instead on discussions with Oman.111213
As the situation develops, Qatar continues to mediate, seeking a diplomatic resolution to the ongoing conflict.141516
“US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced that talks have progressed, allowing shipments to potentially resume soon. The Strait of Hormuz, crucial for global oil supply, handled about one-fifth of daily oil and liquefied natural gas supplies before the conflict began.”
BBC
