Oil prices fall on hopes Strait of Hormuz could reopen
📰 source: bbc_business · 💼 business
oil prices fell to a three-week low tuesday after senior us officials raised hopes of a deal with iran to reopen the strait of hormuz. brent crude dropped nearly 5% to under $80 a barrel, while west texas intermediate fell over 5% to $76.
secretary of state marco rubio said talks via oman had progressed but there was no finality yet. treasury secretary scott bessent said a deal could come as soon as tuesday or wednesday. iran said it isn't negotiating with the us directly, only talking to oman. no details have been released.
the strait normally carries about a fifth of global oil and lng. prices had surged above $120 as the conflict escalated, with uk petrol at £1.60 per litre and us gasoline above $4 a gallon. analysts remain skeptical given past failed talks, while oil giants like bp, shell, chevron and exxon have posted bumper profits.
why it matters: oil's slide on potential strait of hormuz deal signals lower energy costs and inflation relief, but past failures keep markets jittery.
source: bbc_business
sentiment: +0.50 · impact: 0.80